For the Quarter Ending September 2024
North America
In Q3 2024, the Fluorspar market in North America witnessed a downturn, with prices experiencing a notable decrease of 2%. This decline was primarily influenced by a combination of factors such as weakened demand from key downstream sectors, including refrigerant and battery manufacturing, leading to an oversupply situation.
Additionally, manufacturers in exporting countries faced higher production costs due to rising fluorite prices upstream, further impacting market dynamics. The seasonality factor also played a role, with the monsoon season traditionally affecting demand negatively. The overall supply chain had been functioning at a somewhat slower pace. Mexico remained the U.S.'s top trading partner, though Mexican carriers encountered challenges like capacity limitations and a driver shortage.
To mitigate potential disruptions, logistics teams had to be ready for changes in cross-border transportation programs. Truck freight across North America had steadily increased over the past three years, with only two slight decreases during that time. During the quarter, no major disruptions or plant shutdowns were reported, contributing to the stable supply situation. This, combined with the aforementioned factors, led to a challenging pricing environment characterized by decreasing prices and moderate demand levels.
APAC
In Q3 2024, the APAC region experienced a downturn in Fluorspar prices, with Japan being the most impacted by significant price changes. The market witnessed a negative trend, influenced by various factors such as reduced demand from downstream industries like construction and refrigerants, leading to weakened market fundamentals. Adverse weather conditions in key production areas, disruptions in logistics activities, and operational challenges further contributed to the price decline. The quarter recorded a notable -2% decrease from the previous quarter, reflecting the challenging market conditions. Asian ports had been bracing for Super Typhoon Yagi, one of the most powerful storms of the past decade, which had impacted the container flow. The storm brought strong winds, heavy rain, and coastal flooding. Additionally, adverse weather in southern areas, including high temperatures and heavy rainfall, had further complicated fluorite mining activities. Consequently, raw material shortages had limited the operational capacity of fluorite enterprises, maintaining tight supply despite some downward pressure on prices. In the hydrogen fluoride sector, many production facilities had remained shut down, waiting for improved market conditions to resume operations.
Europe
In Q3 2024, the Europe region saw a notable decline in Fluorspar prices, driven by several contributing factors. Supply limitations, caused by challenges in the global freight industry and port congestion, were inclusive of the impacting factors. Additionally, the eurozone's manufacturing sector showed signs of weakness, leading manufacturers to limit discounts and adjust output charges, which contributed to the overall bullish market sentiment. Seasonal trends and market dynamics played a key role in shaping the price trajectory, with a 2% price variation between the first and second halves of the quarter. Seasonal factors resulted in reduced consumption, while an oversupply—driven by improved production efficiency and capacity expansions—put further downward pressure on prices. High inventory levels and increased exports from the region also amplified the price decline. Despite the EU's efforts to achieve climate neutrality, progress in reducing greenhouse gas emissions from the transport sector has been slow. The strike by port workers at Bremerhaven and the Port of Hamburg had disrupted operations for several days due to a dispute between workers' unions and the Central Association of German Seaport Operators (ZDS) over collective wage bargaining negotiations. As these negotiations entered their third round, there had been the potential for further industrial action by port workers to press for their demands, which could have impacted the fluorspar supply chain.
MEA
The third quarter of 2024 for Fluorspar pricing in the MEA region has been challenging, with prices experiencing a consistent decline. Several factors have influenced this downward trend, including subdued demand from the construction sector, increased supply-side pressures, and weakened sales both domestically and internationally. Despite moderate supply levels, operational disruptions, and longer lead times contributed to the overall negative sentiment in the market. South Africa, in particular, witnessed the most significant price changes, with prices dropping by 2% from the previous quarter. Overall, the pricing environment has been unfavorable, with prices consistently decreasing throughout the quarter, highlighting a challenging period for Fluorspar in the region. Plant shutdowns during the quarter added further strain to an already struggling market. The steady influx of new orders in the domestic construction industry had resulted in a decline in Fluorspar's sales volumes. Despite this, demand for Anhydrous Hydrofluoric Acid had remained weak, according to market participants. Meanwhile, inquiries from European countries had been muted, as ongoing inflationary pressures continued to impact their purchasing.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Fluorspar market experienced an upward pricing momentum due to a confluence of factors. Key drivers included robust demand from the downstream refrigerant and construction industries, constrained supply due to reduced operating rates among manufacturing firms, and increased freight costs. The refrigerant sector, critical for hydrofluoric acid production, saw heightened activity, particularly during the peak summer season, which exacerbated supply tightness and further drove prices up. Additionally, global steel demand projections and rising crude oil prices contributed to elevated operating expenses, indirectly influencing Fluorspar pricing.
Focusing on Mexico, this region witnessed the most pronounced price changes in North America. The market's bullish sentiment was underpinned by a steady demand from the refrigerant and construction sectors, coupled with limited supply. Seasonality played a pivotal role, with summer peaks tightening supply and escalating prices. Compared to the previous quarter, Fluorspar prices in Mexico surged by 7%, reflecting a strong market. In the first half of Q2, prices saw a gradual increase, accelerating in the latter half by 3%, culminating in a quarter-ending price of USD 465/MT.
Overall, the pricing environment for Fluorspar in Q2 2024 was decidedly positive, driven by persistent demand and supply constraints, with no significant plant shutdowns reported. This consistent upward trend highlights the robust market dynamics in North America, positioning Fluorspar prices on a stable, growth-oriented trajectory.
APAC
The second quarter of 2024 has witnessed a significant surge in Fluorspar prices across the APAC region, driven by active demand from downstream industries, particularly the refrigerant sector. This period has been characterized by heightened procurement activities as manufacturers ramped up operations to meet seasonal demands, creating bullish market sentiments. In addition, supply-side constraints due to reduced operating rates and strategic plant shutdowns during key holidays in major manufacturers, in China have further exacerbated price pressures. The confluence of these factors has resulted in a pronounced upward trajectory in Fluorspar prices throughout the quarter. Japan, in particular, has experienced the most substantial price increases within the APAC region. The market dynamics in Japan saw significant price inflation, primarily attributed to the strong demand from the refrigerant industries and the limited availability of Fluorspar due to international disruptions and local manufacturing constraints. The first half of the quarter experienced a notable price hike compared to the latter half, reflecting intensified procurement activities and strategic inventory management by manufacturers. Overall trends indicate a positive pricing environment driven by seasonal demand surges and supply limitations. The quarter concluded with Fluorspar prices peaking at USD 580/MT CFR Osaka in Japan, highlighting sustained bullish sentiments and market optimism. This consistent increase underscores the robust market conditions and the critical influence of supply-demand dynamics in shaping Fluorspar prices in the APAC region.
MEA
In Q2 2024, the Fluorspar market in the MEA region experienced a significant surge in prices driven primarily by robust demand from downstream refrigerant industries and constrained supply conditions. The quarter saw an escalating need for refrigerants, propelled by heightened consumption of air conditioning and refrigeration units. This increased demand, coupled with limited production, amplified supply-side pressures, leading to substantial price hikes. Further exacerbating the situation were global shipping disruptions, elevated freight rates, and logistical bottlenecks, which collectively intensified procurement costs. Additionally, the expansion of the refrigerant industry and ongoing constraints in manufacturing capacities have also played pivotal roles in sustaining high Fluorspar prices. Focusing on South Africa, the country recorded the most pronounced price changes in the region. The South African Fluorspar market witnessed overall bullish trends, driven by seasonal demand peaks, particularly from refrigerant industries during the summer months. The market dynamics were further influenced by a modest rebound in mining production. However, frequent logistical challenges escalated shipping costs, and limited operating rates among manufacturing firms contributed significantly to price volatility. A comparative analysis between the first and second half of the quarter indicated a 4% increase in prices, illustrating the consistent rising trend. The quarter concluded with Fluorspar priced at USD 485/MT Ex-Durban, underscoring a positive pricing environment buoyed by strong demand, constrained supply, and seasonal factors.
For the Quarter Ending March 2024
North America
Fluorspar pricing in the North America region for Q1 2024 has been characterized by mixed trends and fluctuations. Overall, the market has experienced a bearish sentiment, with prices declining in January before rebounding slightly in March. The decline in prices can be attributed to weak demand from the construction sector, particularly in Mexico, where the market saw the maximum price changes.
Factors such as reduced activity during the winter season and sluggish inquiries from the downstream construction and refrigerant industries have contributed to the decrease in demand for Fluorspar. Additionally, the oversupply of Fluorspar in the market and the destocking season have intensified competition among suppliers, leading to price reductions.
On the supply side, the availability of Fluorspar has been moderate, with operating rates of manufacturing firms not fully rebounding. However, concerns over shipping disruptions in the Red Sea and the rerouting of vessels have added to supply-side pressures. Looking at the price changes within the quarter, prices decreased by 4.5% in February before increasing by 2.4% in March. This indicates a somewhat volatile pricing environment, with fluctuations driven by demand and supply dynamics. In Mexico specifically, the price of Fluorspar at the end of the quarter was USD 435/MT.
APAC
The pricing environment for Fluorspar in the APAC region during Q1 2024 has demonstrated a volatile trend. The market has been influenced by various factors that have led to a fluctuation in prices. In Januarys, there has been a lack of demand from the downstream industries, particularly the construction and refrigerant sectors. This has resulted in lower inquiries and reduced market activity, leading to bearish market sentiments. Additionally, the Spring Festival holidays have further dampened demand, with construction activities halted during this period. The operating rates of Fluorspar manufacturing firms have also been under pressure, further impacting supply.
In China, which has seen the maximum price changes, the situation is similar. Weak demand from the construction sector and low inquiries from the hydrofluoric acid industries have contributed to the bearish market sentiments. The market transactions have primarily been based on immediate requirements, and manufacturers have been forced to lower their prices in response to weak demand and limited buying interest.
However, in March, the prices of Fluorspar have improved. Amid limited supplies of the finished goods, the demand from the downstream refrigerant industries has also picked up, strengthening the market fundamentals of Fluorspar. As a result, Major Fluorspar producers have implemented price hikes, further contributing to this trend. The latest quarter-ending price for Fluorspar in China is USD 462/MT, Ex Shanghai.
MEA
The pricing environment for Fluorspar in the MEA region during Q1 2024 has demonstrated a mixed trend, with South Africa experiencing the maximum price changes. Several factors have influenced market prices, including weak demand from the downstream construction sector and sluggish inquiries from the Hydrofluoric Acid industries. This has led to an oversupply of Fluorspar in the market, as producers have struggled to offload their inventories at previous levels. As a result, manufacturers have been compelled to lower their prices to stimulate buying interest and clear excess stock.
The typical winter slowdown in construction activity has exacerbated the market's sluggishness, prolonged the oversupply scenario and placed downward pressure on prices. In terms of supply, the availability of Fluorspar has been moderate, with operating rates of manufacturing firms not fully rebounding. However, mining production in South Africa has shown some improvement, easing supply concerns. In March, the rise in inquiries from the downstream Refrigerant industries has led to bullish Fluorspar market sentiments.
Looking at the overall trends, seasonality has played a role in the price changes, with the first half of the quarter experiencing a decline in prices compared to the second half. The latest quarter-ending price for Fluorspar in South Africa is USD 450/MT, Ex-Durban.
For the Quarter Ending December 2023
North America
In Mexico, the prices of Fluorspar have demonstrated a volatile trend in the fourth quarter of 2023. Firstly. the market was primarily driven by increased demand from the downstream construction sector and inquiries from the US market. The limited availability of finished Fluorspar stocks further contributed to the upward trend in prices.
The Mexican market saw a particularly significant impact, with inquiries from the downstream construction and Hydrofluoric Acid industries rising. The availability of Fluorspar in Mexico was adequate to meet the demand from the downstream manufacturing firms. However, the low operating rates of these firms and a slowdown in mining activities at the end of year 2023, have increased the supply-side pressure.
The prices of fluorspar have plummeted in the domestic market of Mexico. The weak demand from the downstream construction sector in Mexico has contributed to a reduction in the prices of Fluorspar. Amidst the winter season, the inquiries from the refrigerant industries were also observed to be insufficient to drive the price realizations of fluorspar on the higher side. Consequently, to stimulate buying interest and clear excess stock, suppliers have been compelled to lower their prices. The price of Fluorspar in Mexico at the end of the quarter was USD 440/MT.
APAC
Fluorspar pricing in the APAC region during the fourth quarter of 2023 was influenced by several key factors. First, there was limited availability of Fluorspar stocks due to a decline in mining activities in the Chinese region. This resulted in manufacturers raising their offers to secure higher profit margins. Additionally, the demand from the downstream construction sector improved, further supporting the upward trend in prices. Furthermore, the availability of raw materials for Fluorspar production was affected by safety accidents in Fluorspar mines, leading to a shortage of Fluorspar ore and a lack of raw materials for downstream Hydrofluoric Acid production. The impact of typhoons Haikui and Khanun also disrupted port operations, causing delays in the shipment of Fluorspar. China experienced the most significant changes in Fluorspar prices during this quarter. The country saw a bullish market situation, with moderate supply and moderate to high demand. In terms of price performance, there was a 2% increase in prices compared to the previous quarter. The price of Fluorspar in China at the end of the fourth quarter was USD 500/MT, Ex Shanghai. This represents a 19% increase compared to the same quarter last year.
MEA
Fluorspar pricing in the MEA region during Q4 2023 was influenced by several factors. Firstly, limited mining activities resulted in a supply-demand gap, leading to higher prices. Additionally, increased inquiries from the downstream construction sector further strengthened market sentiments and prompted manufacturers to raise prices. The availability of finished stocks was also limited, adding to the upward pressure on prices. South Africa, in particular, experienced significant changes in prices. The country's mining production decreased, impacting the supply of Fluorspar in the domestic market. The ongoing issue of load-shedding also affected the manufacturing sector and eroded profitability. In December, additionally, amidst the ongoing destocking season the businesses adjusted their inventory levels to align with lower demand, the resulting oversupply situation has led to intensified competition among suppliers, prompting them to lower prices to remain competitive. However, prices in South Africa saw a 6% increase compared to the same quarter last year. There was a 4% decrease in prices from the previous quarter, reflecting market fluctuations. Moreover, the price comparison between the first and second half of the quarter showed a 6% decrease. Overall, the latest price of Fluorspar Ex-Durban in South Africa for Q4 2023 is USD 455/MT.
