Economic Declaration Captivates the Fluorspar Market Fundamentals in China
- 16-Aug-2022 5:21 PM
- Journalist: Nina Jiang
Shanghai, China: The Chinese manufacturing activity has unexpectedly slackened after a cascade of economic uncertainties in the last two quarters. The stagflation in the global economy and the intensified rivalry with the United States have substantially pressured the market sentiments for various vital commodities, including Fluorspar. Moreover, the benign inflation in China has been attributed to the crippled downstream domestic demand and declining oil prices, which triggered an unusual moderation in the global price indices, inciting the world’s second-biggest economy to slow down.
In the domestic market of China, the price trend of Fluorspar has gained upward momentum and demonstrated a modest surge of approximately 3 USD/MT on a month-to-month basis. The active inquiries from overseas market players have supported the uplifted price realizations of Fluorspar in the regional market. The Chinese export growth has paced up, encouraging the trade activities to boost. As per the observed market scenario, the spot transactions were general, and the market was operating at a stable pace. On the other hand, the adequate availability of downstream Anhydrous Hydrofluoric acid in the domestic market has imbalanced the supply-demand fundamentals among the traders. In addition, the muted demand from the refrigerant industry amidst the offseason has hampered the market development of downstream Anhydrous Hydrofluoric Acid, pressuring the upstream Fluorspar market.
Furthermore, the National Bureau of Statistics (NBS) has reported that industrial output, a measure of activity in the manufacturing, mining, and utility sectors, increased by 3.8% in July, which is a little less than the recorded levels for the previous month. The transport and supply chain disruptions initiated by COVID constraints were progressing to improve, supporting the arbitrage across the nations. Moreover, Chinese policymakers have also been reluctantly stepping up their support for the weak economic outlook.
As per ChemAnalyst, the price dynamics of Fluorspar are anticipated to remain buoyant in the near term. However, the transaction prices are still subject to negotiations and adjustments for overseas orders. Moreover, the global economy has been weighed down by tumbling oil prices and rising interest rates, which might pressure the demand fundamentals from the terminal sector in the forthcoming weeks.