Fuwang-97 Index White Paper

1. Introduction

The Fuwang-97 Index is the first quantitative price benchmark and term-structure indicator in China’s fluorochemical and strategic minerals supply chain to focus on acid-grade fluorspar concentrate. Fluorspar is the “upstream lifeline” of modern fluorine materials, new energy (lithium hexafluorophosphate and PVDF) and high-end refrigerants, yet the industry has long struggled with private over-the-counter negotiation, limited information transparency and a lack of effective hedging tools.

Drawing on the substantial spot liquidity of the Erenhot land port and Inner Mongolia’s core producing areas, the Fuwang-97 Index innovatively and deeply integrates a commodity cost-of-carry damping model with a multi-dimensional macro-fundamental game tensor. It precisely captures the true centre of value of current port spot prices and also provides a forward-looking curve of six independent monthly forward prices. It completely breaks down the information asymmetry of traditional trade, and gives the upstream and downstream of the industry chain, from upstream mining majors and cross-border port traders to downstream leaders in hydrofluoric acid and refrigerants, a strategic pricing anchor that combines foresight, credibility and practical guidance, serving as a “price lighthouse” for the high-quality development of the fluorine industry.

2. Compilation Methodology and Factor Coverage

The Fuwang-97 Index is compiled with a composite algorithmic architecture of “multi-party spot anchoring, dynamic cost tracking, full-spectrum factor correction and normalization of physical and chemical specifications”. The system comprehensively covers, with no blind spots, the core variables that determine and influence fluorspar prices:

2.1 Price Sampling and Multi-Dimensional Factor Coverage

• Cross-border supply chain and logistics: Collects first-hand Mongolian supply data in real time and fully incorporates cross-border short-haul freight at the Erenhot port, customs clearance efficiency, a cross-border logistics congestion index and imported cost disturbances caused by exchange-rate movements.
• Cyclical supply: Rigorously quantifies seasonal changes in operating rates at northern mines and in Inner Mongolia’s core producing areas, precisely covering the cyclical supply elasticity created by winter shutdowns in the severe northern cold, environmental and safety inspections, and the concentrated release of capacity after the spring thaw.
• Downstream demand and policy: Closely tracks downstream anhydrous hydrofluoric acid (AHF) operating rates, leading refrigerant producers’ progress in consuming total quotas, and production schedules in the new energy supply chain, bringing macro policy and micro demand resonance fully into a dynamic adjustment matrix.
• Capital and time value: Systematically embeds the capital occupation cost of commodity supply-chain finance (the funding discount rate) and the monthly amortization base of port stockpiling, warehouse management and physical losses.

2.2 Benchmark Quality

To keep the index pure and comparable, the Fuwang-97 Index sets a strict physical and chemical baseline for acid-grade fluorspar concentrate:

Active content

CaF₂ ≥ 97.0% (the core anchor of the index)

Core impurities

Silicon dioxide SiO₂ ≤ 1.2%–1.5%; calcium carbonate CaCO₃ ≤ 1.0%

Harmful elements

Sulfur S ≤ 0.03%; phosphorus P ≤ 0.05%

Form and moisture

Free moisture ≤ 8.0%–10.0% (standard wet powder)

2.3 Quality-to-Price Deviation

In actual commodity flows, the physical and chemical specifications of each batch vary widely. If the material deviates from the benchmark above, the index system activates a rigorous price deviation and revaluation matrix:

• “Penalty discount” for lower CaF₂ grade: Once active content falls below the 97% benchmark (for example, to 96%), the system does not apply a simple proportional deduction. It triggers a penalty discount that increases at the margin, because lower grade multiplies the oleum consumption of downstream reactors and raises the environmental cost of treating residue.
• “Chemical neutralization deduction” for excess SiO₂: Silicon dioxide is the most important harmful impurity in fluorspar, and excess content directly consumes large amounts of hydrogen fluoride. The index system precisely deducts the corresponding value of lost available fluorine, so that better quality earns a better price.
• “Double cleansing of logistics and energy” for excess moisture: If the moisture of wet powder exceeds the 10% limit, the buyer bears needless freight on water during long-distance transport. The index system applies a “double dry-weight price deduction for excess moisture”, fully removing unnecessary logistics and drying energy losses.

Price Basis

Product

97% fluorspar wet powder

Delivery

Ex-warehouse, Erenhot

Tax

Tax included

Unit and frequency

US dollars per tonne; the spot index is updated weekly and the six forward indices are revised weekly

Exchange rate

Prices are set in Chinese yuan and converted to US dollars at the USD/CNY exchange rate on the publication date. Past charts use the latest rate. The converted figures include Chinese tax and are not export quotations.

Index naming

Named by the last two digits of the year and the month. The 2612 Index refers to December 2026 and the 2701 Index to January 2027. Each release covers the next six months and rolls forward monthly.

The spot price is the market spot quotation in Erenhot. The historical segment of the Fuwang-97 Index is backcast from market data and, together with the weekly-revised forward segment, forms the full curve. Each release is snapshotted so that revisions can be compared.

National Market Index (Comparison Series)

The market page also shows a “National Market Index” so that the Erenhot port price can be read against the wider domestic market. It is a national-basis reference series compiled monthly from multiple publicly available price observations for 97% fluorspar wet powder. It is independent of the Fuwang-97 Index and does not enter its calculation.

Compilation Rules

• Included: public observations explicitly for 97% wet powder quoted in Chinese yuan at national level — monthly averages, national averages, mid-points of mainstream ranges and year-end benchmark nodes. When a month has several observations, the median is used to limit the effect of any single source.
• Excluded: values reverse-derived from forecasts or month-on-month changes, individual company quotations, foreign-currency FOB prices, and entries whose product or price basis is unclear.
• Regional prices: ex-works, delivered and regional transaction prices do not enter the median. They are used only to describe the dispersion of observations in a month, so that months with many regional quotes do not outweigh national-basis data.
• Fitted months: when a month has no verifiable national observation, its value is fitted between the two neighbouring observed months in proportion to the relative movement of the Fuwang-97 Index, with both endpoints pinned to the observations. Where no matching Fuwang series value exists, linear interpolation between the neighbouring observed months is used instead. February, June and July 2026 are fitted months. They use the same dots as observed months on the chart; their status is retained in the compilation ledger. Because fitted values are derived from the Fuwang series, they are not independent observations and are excluded from any fit assessment.
• Frequency: updated on the 3rd of each month and compiled monthly, unlike the weekly-updated spot index and weekly-revised forward indices. Monthly values are marked with dots on the chart.

Basis Difference and Limits of Use

The National Market Index uses a national average basis and is higher than the Erenhot spot price. This is a basis difference that includes freight, financing costs, trader margins and other factors. The two series should be compared for direction and timing rather than for the absolute spread.

The National Market Index is a synthetic reference value. It is not a transaction price, not an executable quotation and not a basis for contract settlement. Copyright in the underlying observations remains with their publishers; this site uses only the compiled monthly values and does not reproduce original price tables.

Records and Comparison

Each index release is retained when published and compared with the actual price at maturity. The specific formulas, weights and parameters are Fuwang’s proprietary methods and are not disclosed.

The comparison tables on the market page have two parts: the past six months show, month by month, the same-month estimate, the actual, the gap and the deviation in percentage points — both the raw deviation including the basis difference and a basis-adjusted deviation. The next six months retain the published forecasts, with actuals added at maturity. The past estimates are same-month backcast values, not forecasts released in advance, and the two must not be confused. Deviation is the gap divided by the actual; fitted months are excluded from the statistics. The National Market Index is updated on the 3rd of each month.

The index is a calculated reference value, not a market transaction price or an executable quotation. Errors generally grow with the length of the term.

About Us

Fuwang is operated by Hangzhou Shengyan Zhilian Technology Co., Ltd. The platform does not match trades and charges no transaction commission.

Disclaimer

Fuwang only displays prices and forecasts. It does not match trades, buy or sell on behalf of anyone, or take part in the negotiation, delivery or settlement of any transaction.

Spot prices, index values and converted figures on this website are for reference only. They are not quotations, offers, commitments or investment advice, and their accuracy, completeness and timeliness are not guaranteed.

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