Active Downstream Inquiries Accelerate Fluorspar Market Growth Globally
- 13-Sep-2022 4:55 PM
- Journalist: Shiba Teramoto
With the world switching to electric vehicles, the global demand for batteries has soared, boosting the demand dynamics of upstream Fluorspar across the globe. Amid the global supply constraints brought on by extensive heat waves in China and port congestion in USA, the Fluorspar market growth has flourished with active inquiries from the downstream steel manufacturers and the refrigerant sector in the regional markets.
In China, the price trends of Fluorspar have demonstrated a stable monthly movement. The trading situation in the domestic region was average, and the downstream inquiries from Anhydrous Hydrofluoric Acid were relatively lower than anticipated. As per the observed market scenario, China's factory activity has been contracting for the past two months. The scorching heat waves and power rationing have engulfed the manufacturing provinces, Sichuan and Chongqing. Furthermore, the China Association of Automobile Manufacturers (CAMM) has reported that the August sales of new energy vehicles have been two-folded from last year's observed values and have strengthened the market fundamentals of upstream Fluorspar among the market participants.
On the other hand, in Mexico, Fluorspar prices have demonstrated an increment of nearly USD 3 per ton in August compared to last month's prices. The integrated supply chain between Mexico and the US with a shared land border has reinforced the bilateral trade without port-related disruptions and bolstered Fluorspar's supply fundamentals and its derivatives in the regional market. The St. Lawrence fluorspar mine in Canada has also been back in business after the production was halted in the middle of the first quarter. Furthermore, the Fluorspar market has continued its upward momentum in India and South Africa owing to solid demand fundamentals from the downstream refrigerant industries.
As per ChemAnalyst, the idea of developing next-generation battery technologies to enable vehicle electrification and broader adoption of renewable energy will lead to the market growth of Fluorspar globally. In addition, the intensified economic challenges and fluctuating energy costs will continue to impact the price realizations of FLourspar in the forthcoming weeks.