Fluorspar Market

Market Overview

The global fluorspar market size had a value of 8,023 kilotons in 2022. It is expected to reach 16,038 kilotons by 2031, growing at a CAGR of 8% during the forecast period (2023-2031).

Fluorspar occurs naturally at the earth's surface. It can be found in hydrothermal fluids and places where recent volcanic eruptions have occurred. Fluorspar typically has pastel colors since it is primarily made of iron. By indicating whether it was generated during a recent geological event, fluorspar can be used to reconstruct the history of a specific area or geological feature. They can also be found in limestone and dolomite fractures and holes. It manifests as cubic, isometric stones with a cleavable bulk that are dull, transparent, and brilliantly dazzling. Fluorspar's color can become purple, blue, green, yellow, or another color due to pollution. Depending on its qualities, fluorspar is divided into many types, such as corrosive fluorspar, ceramic fluorspar, met fluorspar, and others.

The main market drivers are the rising demand for chemicals made from fluorspar and rising steel output. On the other hand, environmental restrictions on extracting compounds from fluorspar have severely slowed market expansion. Opportunities for the fluorspar industry are anticipated as lithium batteries employ fluoropolymers made from fluorspar more frequently. The market is also anticipated to have considerable growth over the projected time frame due to the development of lithium-particle batteries over conventional batteries. As a result of growing disposable income and shifting lifestyles, the optics, earthenware, and individual consideration industries are also expected to grow in emerging nations over the projected period.

Market Dynamics

Fluorspar Market Drivers

The Flourishing Demand from Fluorspar Extract Chemicals

Calcium and fluorine are present in fluorspar or fluorite in the ratio of 51.1 to 48.9 in terms of chemical composition. Fluorspar is used to make 95% of all fluorine and fluorine-based chemicals. Hydrochloric acid, which makes up more than 50% of all fluorspar usage, is one of the main compounds made from fluorspar. Other minor uses of fluorspar in fluorocarbon-derived goods include the production of welding rods for steel, aluminum, and roads. The production of fluoropolymers, which are utilized in a variety of end-use sectors around the world, including paints and coatings, electrical and electronics, automotive, and aerospace, is also aided by the use of HCFC.

Since fluorspar is a significant contributor to the production of hydrochloric acid, the demand patterns for HCL are directly correlated with fluorspar consumption. Additionally, the usage of HCL in the oil and gas business is expanding, and pickling is becoming more and more popular in the steel industry. HCL is frequently used in oil and gas to stimulate oil and gas wells, particularly carbonate deposits. Oil and gas businesses intend to expand their manufacturing operations in response to the rising demand in nations like China and India. This will lead to an increase in hydrochloric acid consumption, which in turn would increase the consumption of fluorspar. Fluorspar demand is therefore anticipated to increase during the projection period due to this increased demand for extracted chemicals for the end-user industry.

Steel is also the most significant alloy, with a variety of uses in many different industries. Building and construction, electrical equipment, home appliances, mechanical equipment, metal products, automobile, and other transportation are some of the key industries that employ steel. The steel output is also rising in tandem with the demand from these sectors. Sulfur, phosphorus, carbon, and other impurities in the slag can be absorbed and removed by fluorspar, which is employed as a flux to lower the melting temperature and promote chemical reactivity.

Due to the significant expansion of residential, healthcare, commercial, and office buildings, North America's demand from the United States is anticipated to rise. According to data provided by world steel, the North American steel demand is expected to rebound with an increase of 16.6% to reach 117.8 by 2021. In the upcoming years, normalized growth is anticipated as fluorspar consumption rises globally.

Fluorspar Market Restraints

Regulations on the Extraction of Chemicals from Fluorspar

In mining, massive volumes of rock overburden are removed from the ground, processed, and then disposed of. Landscapes are significantly impacted by mining on a local level, mainly when open-pit mining is employed. Like almost all mining operations, the extraction of fluorspar affects the local environment and topography. By diminishing biological activity in the immediate area of the mining region, open pit mining lowers the ecosystem's functioning and stability because topsoil is removed, leading to the loss of grasslands or forests.

Additionally, as surface ore is exposed to air more frequently, metals and perhaps oxidation of sulfides from the ore speed up the release of metals into surface and groundwater, causing local pollution of soil and water. Animal migration and mortality are also unavoidably brought on by the noise, vibration, water pollution, and dust emissions associated with mining. Changes in the landscape also have an impact on how communities live. Additionally, the extraction of subsurface fluorite produces a sizable volume of toxic water that needs to be removed from the mines. Fluoride and heavy metals could contaminate the water if these effluents are thrown into a water body without being cleaned first. Thus, restraining the market.

Fluorspar Market Opportunities

Product Developments

Manufacturing fluorinated polymers like PTFE, PVDF, and others use fluorspar. In Li-ion batteries, the fluoropolymer polyvinylidene fluoride (PVDF) is frequently employed as a binder resin for electroactive components. In the form of separator coatings, it is also utilized for safety reasons. The main factors influencing people's preference for PVDF as a binder resin include its high electrochemical stability, capacity to be easily dissolved in common solvents, and ability to be solution cast on industrial production lines. In these past years, the use of lithium-ion batteries has increased exponentially.

Consumer gadgets, including phones, tablets, and power tools, were the primary drivers of the market's first expansion. However, at this time, electric vehicles are in the most significant demand. The selection of the electrode binder material is crucial for creating lithium-ion batteries with improved performance. PVDF resins offer quick dissolution, simple processing, high adhesion/low loading, reduced electrolyte swelling, decreased electrode resistance, and high voltage stability for these applications. The demand for lithium-ion batteries is also driven by the rising popularity of smartphones and tablets. The market is driven by the expansion of innovations and the development of high-capacity batteries with quick-charge technologies.

Regional Analysis

The region-wise segmentation of the global market includes Asia Pacific, North America, Europe, South America, and MEA.

The Asia Pacific and Europe will dominate the regional market

The Asia Pacific will most likely command the fluorspar market while advancing at a CAGR of 8.35%. In the region, China is the prime revenue generator. Fluorspar is a crucial mineral used as a raw material in the industry. It is primarily found in China's vastly resource-rich provinces and regions, including Hunan, Zhejiang, Jiangxi, Inner Mongolia, Fujian, and Henan. Contrarily, the vast majority of fluorspar deposits are small to medium size. Few of China's fluorspar deposits are rich, with the bulk lean. Due to environmental constraints on local supply and increased domestic demand from an expanding fluorochemicals market, China has become a net importer of fluorspar since 2018, with over 500,000 metric tons imported vs. just over 400,000 metric tons exported in the previous year.

Fluorspar production is dominated by small and private companies, with only a handful of large and influential companies located in provinces with abundant fluorspar resources, such as Zhejiang, Jiangxi, Inner Mongolia, and others. Some businesses engage in unlawful and excessive mining, resource waste, environmental pollution, and outmoded technology, equipment, and production controls, all of which result in abandoned mines. The Chinese fluorspar industry is upsurging due to the rising demand for rechargeable batteries, particularly in electric vehicles. Manufacturers are increasingly choosing fluoride ions over lithium-ion because fluorine has a greater electronegativity. Since significant quantities of fluorspar are needed in applications like HF manufacturing and lithium-ion grade batteries, fluorspar demand in the battery industry will continue to rise during the projection period.

Europe will hold the second-largest share. Germany majorly dominates the European market. The primary fluorspar mines are located in the Munster valley pits, in the southern Black Forest, near Wieden, St. Blasien, Aitern, Grafenhausen, Igelschlatt, Brenden, and Brandenberg. Until the pit was closed owing to global market pricing, the Käfersteige mine, located southeast of Pforzheim, was the biggest fluorspar mine in the world. There are now two operating mines in Germany that mine raw spar with varying amounts of heavy spar and fluorspar. These are the Niederschlag mine in the Ore Mountains and the "Clara" mine in the Black Forest. The concentrations of fluorspar and barite in German-mined minerals vary widely. As a result, these minerals go through several intricate processes to be separated from one another and strengthened.

Segmental Analysis

The global market is bifurcated based on grade, application, and region.

By Grade Analysis

As per the grade, the segments are Acid Grade, Ceramic Grade, Metallurgical Grade, Optical Grade, and Lapidary Grade.

The acid-grade section is forecasted to hold the largest share, expanding at a CAGR of 7.15%. The primary raw material utilized in manufacturing hydrogen fluoride, fluorocarbons, fluoropolymers, and inorganic fluorides is fluorspar of the acid grade. This reaction transforms the hydrogen fluoride or hydrofluoric acid that is created into fluorine, fluorocarbons, or other fluoride compounds. Additionally, it is employed in producing hydrofluoric acid (HF), which has uses in producing fluorocarbons, electrical and electronic devices, lithium batteries, medicines, polymers, agrochemicals, and catalysts for petrochemical reactions. The rise of acid-grade fluorspar is anticipated to be aided by rising demand for hydrofluoric acid (HF) from the pharmaceutical, electrical and electronic appliance, lithium battery, and agrochemicals industries throughout the forecast period.

The metallurgical grade section will hold the second-largest share. Fluorspar of the metallurgical grade is applied in the cement and steel industries. The metallurgical grade fluorspar is used as a flux in the steel-making industry to reduce the melting temperature and boost chemical reactivity to help absorb and remove sulfur, phosphorus, carbon, and other impurities from the slag. The calcination process is accelerated by using the metallurgical grade fluorspar as a flux, allowing the kiln to run at lower temperatures.

By Application Analysis

As per the application, the sections are Metallurgical, Ceramics, Chemicals, and Other Applications.

The chemical section is forecasted to hold the largest share, expanding at a CAGR of 7.1%. In the chemical industry, fluorspar is used to make hydrofluoric acid. Various products, including fluorocarbon compounds, refrigerants, foam-blowing agents, and fluoride chemicals, are produced using the hydrofluoric acid that is created. The chemical sector is anticipated to expand globally due to rising export demand, rising consumption, and supportive government policies. In the chemical industry, fluorspar is increasingly used to make hydrofluoric acid, which is then used to make various products, including fluorocarbon compounds, among others.

The metallurgical section will hold the second-largest share. Primary uses for fluorspar include manufacturing steel, iron, and other metals. It works as a flux to remove impurities from molten metal, such as sulfur and phosphorus, and to increase the fluidity of slag. The prospecting, mining, scrubbing, melting, and rolling of metal minerals are all considered part of the metallurgical sector. Fluorspar's rising demand is anticipated to stimulate global metallurgical activity, which will support the expansion of the fluorspar market during the forecast period.

Recent Developments

• In 2022, Koura opened the first HFA 152 production facility in the world at their UK location in Runcorn.