Editor:Adam Zhang
Chinese fluorspar prices remain high amid supply squeeze which in turn is driving demand and prices in South Africa.
Chinese acidspar prices held firm this past week supported by a lack of material available for export.
The supply squeeze comes as a result of factory closures in the North and Northeast due to the cold weather, as well as shutdowns and production caps caused by the implementation of pollution controlling government policy.
Acidspar 97% CaF2, wet filtercake, fob, China held at $480-520 per tonne 25 January up from $400-420 per tonne at the end of 2017 and $380-400 per tonne in June 2017.
Under pressure to improve the environment many factories have shifted away from using coal, causing the gas supply to become limited. With energy for houses and key infrastructure taking priority production rates at some industrial minerals producers have been impacted.
This has also restricted the operations of fluorspar consumers such as aluminium smelters and steel producers however as both consume large amounts of gas.
Nonetheless demand from Chinese consumers is also said to be restricting the amount of fluorspar available for export.
Cyclical factors such as Chinese New Year and the cold winter weather were also citing as reasons the prices remain firm.
Purchasers are willing to pay higher prices in order to secure supply ahead of Chinese New Year which brings production and trading to a standstill each year.
Elsewhere in the world, the price for South African acid-grade spar moved up by $50 to $350-400 per tonne, basis 97% CaF2, dry filtercake, fob, Durban, South Africa, according to Northeast Asia Industrial Mineral’s 25 January price assessment.
The rise comes as South African product is being sought to fill the gap left by the decline in Chinese exports.
Some contracts were concluded outside of the new range, particularly on the lower end, but largely due to unique delivery arrangements or due to pending material from previous contracts.
All other prices stayed flat from the previous pricing on January 18.