The price increase of aluminum fluoride was less than expected as major enterprises bargained down prices

In April 11-May 10, aluminium fluoride prices went up, bolstered by raw material prices. As of May 11, SMM aluminum fluoride prices were at 10,500-10,800 yuan/mt, up 5.97% MoM. SMM cryolite prices were 6,500-7,500 yuan/mt, flat MoM.

Since the beginning of this year, regulators have further strengthened the safety rectification of fluorite mines. At the beginning of the year, Jiangxi Province issued a one-year rectification notice, and then in March the National Mine Safety Administration issued a nationwide rectification notice. Affected by national policies, the overall operating rate of fluorite mines declined, further tightening supply. In May, news were flying that mines were shut down for rectifications, boosting fluorite prices. A leading company in the industry issued an announcement on May 6 that its mines were suspended due to safety hazards. The fluorite prices to aluminum fluoride plants were mainly 3,500-3,800 yuan/mt on delivery-to-factory basis, up 8.96% MoM. Aluminum fluoride prices were supported due to rising raw material prices.

Aluminum fluoride enterprises maintained stable production and mainly executed monthly orders. Some companies reduced production due to poor orders and profits, which may return to normal levels this month. On the demand, the operating capacity of domestic aluminum companies picked up slowly. Overall, the supply and demand of aluminum fluoride improved.

On May 11, the aluminum fluoride bidding price of major enterprises was announced to be 10,150 yuan/mt, missing expectation at the end of April. However, it extended the upward trend, supported by raw material prices.