SMM, February 20:
Recently, aluminum fluoride enterprises have primarily focused on fulfilling orders, with transactions remaining sluggish. Aluminum fluoride prices held steady, with SMM aluminum fluoride prices closing at 10,600-11,200 yuan/mt, and SMM cryolite prices at 6,500-7,200 yuan/mt.
Raw material side, the fluorite market remained stable, with the delivery-to-factory price of 97% fluorite powder required by aluminum fluoride enterprises staying at 3,450-3,800 yuan/mt. Currently, mine operating rates remained at low levels, and downstream market procurement was slow, mainly fulfilling just-in-time orders to consume inventory. According to SMM data, the average delivery-to-factory price of 97% fluorite powder was 3,617 yuan/mt, holding steady MoM. Meanwhile, the price of another raw material, aluminum hydroxide, continued to decline due to weaker raw material support. SMM recorded the average ex-factory price of aluminum hydroxide at 2,137 yuan/mt, down 7% MoM. This situation led to softer costs for aluminum fluoride, weakening the overall price support for aluminum fluoride.
Supply side, some enterprises gradually resumed operations after the holiday, with supply recovering compared to pre-holiday levels. Demand side, although operating capacity for aluminum increased, some enterprises had already completed inventory stocking before the holiday, leaving overall market demand relatively sluggish.
Brief Comment: Although current market operations are normal, production has increased while demand remains weak. Additionally, inventory accumulation has further impacted enterprise operations. Despite the price reduction of aluminum hydroxide alleviating cost pressure to some extent, transaction prices still fail to cover cost gaps. Therefore, the market is unlikely to rebound in the short term, lacking effective support for recovery, and prices are expected to face downward pressure in the future.
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