Various Aspects Drove the Fluorspar Price Movement to Witness an Uptrend in China
- 15-Jul-2022 5:29 PM
- Journalist: Xiang Hong
Shanghai, China: The Fluorspar price movement has gained upward momentum and surged in the domestic region of China this week. The stabilized input costs and active inquiries from downstream industries have supported Fluorspar's rising market value. The escalated prices of Fluorspar have weighed on the market outlook for its downstream anhydrous hydrofluoric acid and substantially pressured the operating rates of the manufacturers.
In China, the price trends of Fluorspar have shown an increment of approximately 20 Yuan per ton on July 15th compared to the prices observed on the first week of July. China dominates the global Fluorspar market, holding more than 60% of its production, followed by Mexico and South Africa. China's trade activities have recently flourished after a sharp slowdown in the second quarter amid widespread COVID restrictions jolting factories and consumption, offsetting the trade imbalance.
On the other hand, the western market players were hesitant to procure the Russian cargoes of downstream anhydrous hydrofluoric acid amidst the sanctions. The traders have been focusing on the Asian suppliers to comply with the escalating demand from the end-user industries, further pressuring the supply outlook across the Asia-Pacific region. As a result of active inquiries from the European Region for the downstream Anhydrous Hydrofluoric Acid, bullish market sentiments have been observed among traders for Fluorspar in the regional market of China.
However, as per the current scenario, a stringent lockdown has been reimposed in China after a resurgence of new COVID cases. Also, the mining activities have taken a backseat with the arrival of the monsoon, giving rise to a tight supply of Fluorspar available for domestic and international consumption, provoking supply-side concerns in the Asian nation.
As per ChemAnalyst, the price dynamics of Fluorspar will likely witness an uptrend with the prevalence of stringent COVID restrictions. The lockdowns will again seed the trade disruptions with halted production activities and prompt enough cost pressure on the price value chain of Fluorspar and its derivatives.