by Fluorspar, also known as calcium fluoride (CaF2), is a mineral that contains fluorine and calcium. It is an important commercial source of fluorine. Fluorspar is essential in chemical and metallurgical processes such as in steelmaking, aluminum production, glass etching and as a flux in welding and soldering. Around 60% of fluorite extracted globally is used in steel production and aluminum smelting where it acts as a flux that lowers the melting temperature of raw materials during smelting and improves the quality of steel and aluminum. Increasing demand from the steel and aluminum industries is projected to drive the growth of the fluorspar market over the forecast period. The aluminum industry consumes around 30% of total fluorspar production and annual fluorspar consumption by steel producers accounts for around 60% of production.
The global fluorspar market is estimated to be valued at US$ 2.2 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Acid grade fluorspar remains the most lucrative segment for fluorspar producers as it accounts for over 50% of global fluorspar consumption primarily driven by its widespread use in the steel industry. However, with aluminum gaining traction as an alternative to steel, metallurgical grades may witness relatively slower growth compared to acid grades over the forecast period. While China dominates fluorspar production, countries like Mexico are expected to gain significance in exports to address the shortage of fluorspar supply from China. Sustainable mining practices are being increasingly adopted by fluorspar miners to reduce environmental impact. Miners are also focusing on improving recovery rates to boost output.
Porter’s Analysis
Threat of new entrants: The fluorspar market size requires high capital investments for mining operations which acts as a barrier for new players.
Bargaining power of buyers: The buyers have moderate bargaining power due to availability of multiple suppliers in the fluorspar market.
Bargaining power of suppliers: The suppliers have moderate bargaining power due to availability of substitutes in the market.
Threat of new substitutes: The threat of substitutes is low as fluorspar has limited substitutes for its end-use applications.
Competitive rivalry: The competition is high among the existing players due to stable supply and demand dynamics in the market.
Key Takeaways
The global fluorspar market is expected to witness high growth over the forecast period. The global fluorspar market is estimated to be valued at US$ 2.2 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030.
China dominates the global fluorspar market owing to high metallurgical grade fluorspar reserves and increasing steel production in the country. The Asia Pacific region is expected to grow at a high pace due to expanding automotive, aluminum, and pharmaceutical industries in emerging economies such as India and China. China dominates the global fluorspar market and accounts for over 50% of the global production.
Key players: Key players operating in the fluorspar market are Fluorsid (British Fluorspar), Canada Fluorspar, China Kings Resources Group Co. Ltd, MINCHEM IMPEX India Private Limited, Minersa Group, Mongolrostsvetmet LLC, RUSAL, and Sallies Ltd. Fluorsid (British Fluorspar) and MINCHEM IMPEX India Private Limited are prominent players engaged in mining and trading of fluorspar across geographies.
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