July 12, 2024
Fluorspar Market

Fluorspar Market Witness High Growth Owing To Rise In Metallurgical Grade Fluorspar Demand

The Fluorspar Market is estimated to be valued at US$ 2.2 Billion in 2022 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Fluorspar is a naturally occurring mineral consisting of calcium fluoride (CaF2) and is used commercially as a flux in metal production and as an acid-sparing ingredient in the chemical industry. It is the primary source of fluoride for hydrofluoric acid production, which is used to produce aluminum, jet fuel, refrigerants, and uranium fuel. Fluorspar has superior acid-handling properties and are widely utilized as acid-sparing ingredients in various chemical processes and applications.

Market key trends:

Metallurgical grade fluorspar is used as fluxing agent in steel production and aluminum smelting. The growing steel and aluminum industries have increased the demand for metallurgical grade fluorspar. According to World Steel Association, the global crude steel production increased from 1,729.8 million tons in 2017 to 1,950.4 million tons in 2021. The aluminum production also grew steadily over the past few years. The surging steel and aluminum production along with substantial use of metallurgical grade fluorspar in their manufacturing is the key factor expected to drive the fluorspar market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: New players face significant threat as fluorite mining requires high capital investment for exploration and set up of processing facilities. Bargaining power of buyers: Buyers have moderate bargaining power due to the specialized nature of fluorspar and limited number of suppliers globally. Bargaining power of suppliers: Suppliers have moderate bargaining power owing to availability of fluorspar reserves with a few major players and difficulty of expansion of new production capacities. Threat of new substitutes: Substitutes are limited but growth of artificial cryolite and development of alternative materials can pose threat. Competitive rivalry: Intense competition exists among established players to gain market share and expand production capacities.

SWOT Analysis

Strengths: Strong demand from chemical and aluminum industries. China and Mexico are key producers with large reserves.
Weaknesses: Fluorspar mining is capital intensive. Fluctuating prices depend on supply-demand dynamics.
Opportunities: Growing consumption in developing countries driven by infrastructure growth. Emerging applications in solar panels and lithium-ion batteries.
Threats: Stringent mining regulations. Substitution risk from artificial cryolite and alternative materials.

Key Takeaways

The Global Fluorspar Market Size is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing demand from aluminum and chemical industries. The market was valued at USD 2.2 Billion in 2022.

Regional analysis – Asia Pacific dominates the global fluorspar market and is expected to grow at the fastest rate during the forecast period. Countries like China, India, and South Korea are the major consumers of fluorspar due to large aluminum and chemical industries in the region.

Key players operating in the fluorspar market are Fluorsid (British Fluorspar), Canada Fluorspar, China Kings Resources Group Co. Ltd, Kenya Fluorspar, Koura, Masan Resources, MINCHEM IMPEX India Private Limited, Minersa Group, Mongolrostsvetmet LLC, RUSAL, Sallies Ltd, Steyuan Mineral Resources Group Ltd, and Seaforth Mineral & Ore Co.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it