Aluminum Fluoride Prices Remain Stable; Weak Supply and Demand Affect Market Activity [SMM Fluoride Weekly Review]

SMM, January 16:

This week, aluminum fluoride enterprises primarily focused on fulfilling previous orders, with aluminum fluoride prices remaining largely stable. As of now, SMM aluminum fluoride prices closed at 11,200-12,500 yuan/mt, while SMM cryolite prices were quoted at 6,500-7,200 yuan/mt.

On the raw material side, for fluorite, the delivery-to-factory price of 97% fluorite powder for aluminum fluoride enterprises mainly ranged from 3,450 to 3,750 yuan/mt. During the week, fluorite prices showed a slight decline amidst stability. As the Chinese New Year holiday approached, the operating rates of mines and beneficiation plants decreased, slowing the market's shipment pace and further reducing market activity. Downstream hydrogen fluoride industries exhibited weak purchase willingness. Overall, the fundamentals of the fluorite industry remained largely unchanged, with miners and beneficiation plants gradually reducing operations, leading to constrained supply. Under these circumstances, some suppliers opted to withhold goods and held optimistic expectations for the post-holiday market. Currently, SMM recorded the average delivery-to-factory price of 97% fluorite powder at 3,592 yuan/mt, down 0.46% MoM. Additionally, SMM learned that the prices of other aluminum fluoride raw materials, such as aluminum hydroxide, continued to decline due to weakened raw material support. Currently, SMM recorded the ex-factory average price of aluminum hydroxide at 3,380 yuan/mt, down 4.28% MoM. The loosening of raw material prices on the cost side weakened support for aluminum fluoride.

Supply side, the significant price reduction of aluminum fluoride under current market conditions has exerted notable pressure on enterprise profitability, leading to some enterprises experiencing losses. To address this situation, some enterprises opted for production halts and maintenance to minimize losses, which also resulted in a decline in supply. Demand side, although aluminum enterprises maintained stable production, most enterprises had already completed their restocking activities. Current restocking behavior is primarily focused on meeting immediate needs, resulting in relatively weak demand and reduced overall market activity.

Brief Comment: During the week, aluminum fluoride enterprises experienced sluggish transactions, mainly fulfilling previous orders. Currently, both supply and demand for aluminum fluoride remain weak, coupled with continuous weakening on the cost side. SMM expects aluminum fluoride prices to remain largely stable.

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