Fluorspar Prices Remain Buoyant in the Global market Owing to Active Demand Fundamentals
- 19-Jan-2023 3:02 PM
- Journalist: Robert Hume
The prices of Fluorspar have gained upward momentum in the regional markets. The inflationary pressures across the US and EU markets have inched lower, and natural gas prices have also depleted on an m-o-m basis. However, the Chinese Fluorspar market has stabilized, and the prices have undergone minor fluctuations. The market participants reported that the supply of goods was adequate, and the downstream purchases were mainly based on demand. The manufacturers have slightly revised their quotations to sustain their profit margins. The ChemAnalyst database has shown that Fluorspar prices demonstrated an increment of USD 5 per tonne in December 2022.
In South Arica, since the mine was closed for Christmas and New Year's, output decreased in December, resulting in a restricted supply of Fluorspar for domestic and international consumption. However, the inquiries from the downstream were also on the lower end, weakening the market sentiments for Fluorspar. On the other hand, the CEO of BHP Group Limited has emphasized that mining activities for mineral elements should be accelerated throughout the world to accomplish energy transition commitments over the next 30 years for a sustainable future.
Furthermore, the Indian economy has been resilient, and the economic crisis caused by COVID-19 has triggered relatively moderate inflation. As a result, sustained growth has been observed in the pricing dynamics of several chemicals, including Fluorspar. The inquiries from the downstream construction sector have also accelerated and strengthened Fluorspar's market fundamentals in India's domestic region. In addition, as per the observed market scenario, in the US, consumer price inflation has been heading toward the lower end amid deteriorating demand from the end-use industries.
According to ChemAnalyst, Fluorspar prices are anticipated to remain buoyant in early Q1. The momentum for the Fluorspar market is building as the winter season will soon end, and the demand from the refrigerant market will expand. Additionally, the demand from the construction industries is also likely to gain momentum and boost the demand dynamics for Fluorspar in the forthcoming weeks.