Spiraling Downstream Inquiries Intensify the Pricing Dynamics of Fluorspar in the Global Market
Spiraling Downstream Inquiries Intensify the Pricing Dynamics of Fluorspar in the Global Market

Spiraling Downstream Inquiries Intensify the Pricing Dynamics of Fluorspar in the Global Market

  • 14-Oct-2022 3:47 PM
  • Journalist: Patrick Knight

The broadening inflationary pressures, the economic slowdown in China, and the ongoing supply chain disruptions in Europe's container ports, Felixstowe and Liverpool, have pressured the price movement of several commodities, including Fluorspar. The ChemAnalyst database shows that the price trend of Fluorspar has gained upward momentum in the domestic markets of South Africa, China, and Mexico amid the steep economic challenges. However, the positive growth in the global demand for downstream refrigerants and EV vehicles has boosted the market fundamentals of Fluorspar.

In South Africa, strikes at rail and port provider Transnet have been causing significant supply chain disruption and threatening more comprehensive economic turmoil. South Africa, the largest global reservoir of Fluorspar, exports a considerable fraction of the commodity to Europe to produce Hydrogen Fluoride and other fluorite-linked products. Several mining companies, including Thungela Resources, and Jupiter Mines, have reported that the strikes will constrain the production and export of mining chemicals, including Fluorspar. Inactivity at ports has blocked more than 500 million euros worth of trade daily, steadily deteriorating the trade balance.

Furthermore, in China, the prices of Fluorspar have been on a bullish run since the start of the first week of the fourth quarter. The market participants have reported that the operations at Fluorspar remained under pressure due to stringent safety and environmental protection guidelines in the mining area. As a result of the supply shortage, the manufacturers have raised their quotations to gain some profit margins. Furthermore, active inquiries from the downstream hydrofluoric acid industry and rising offtakes from the downstream refrigerant industry have fueled Fluorspar market sentiment among traders. The data shows that the ex-factory prices of Floursar have increased by USD 4/tonne in the last month of the third quarter. Moreover, a monthly escalation of approximately 1.2% has been observed in Mexico in the same timeframe.

According to ChemAnalyst, Fluorspar prices will remain buoyant across the regional markets. The Flourite manufacturing units in the north are about to enter the seasonal production halt period, tightening the supply flow of Fluorspar for the downstream refrigerant industry. Thus, Fluorspar's price chain and its derivatives will likely have an uptrend in the forthcoming weeks.

Related News

Weak Demand Pictures Bearish Outlook on Fluorspar Prices for February 2024
  • 21-Feb-2024 6:43 PM
  • Journalist: Gabreilla Figueroa
Supply-Demand Gap Intensifies South African Fluorspar Prices on the Upper Edge
  • 17-Oct-2023 3:25 PM
  • Journalist: Francis Stokes
Utah to Unveil North America's First Domestic Fluorspar Processing Plant
  • 12-Jul-2023 1:57 PM
  • Journalist: Gabreilla Figueroa
Reviving Essential Mining in the U.S.: A Company Driven by Government Action
  • 21-Jun-2023 2:38 PM
  • Journalist: Shiba Teramoto