SMM March 13 News:
This week, aluminum fluoride prices continued to weaken, influenced by the tender prices of downstream benchmark enterprises. As of now, SMM aluminum fluoride prices closed at 9,900-10,300 yuan/mt, while SMM cryolite prices were quoted at 6,500-7,500 yuan/mt.
From the perspective of raw material supply, the fluorite market remained largely stable this week. The delivery-to-factory price of 97% fluorite powder, a key raw material for aluminum fluoride production, remained stable within the price range of 3,500-3,800 yuan/mt. Recently, fluorite mine operations have been restricted by environmental protection and safety requirements, making the tight supply situation in the market difficult to alleviate in the short term. Meanwhile, downstream enterprises mainly maintained rigid demand, with no significant increase on the demand side. Currently, fluorite powder prices remain at a high level, and downstream enterprises have been cautious in their purchases. Coupled with rising sulphuric acid prices, hydrofluoric acid plants have shown low acceptance of high-priced fluorite powder. Therefore, SMM expects fluorite powder prices to remain volatile at high levels in the short term. According to the latest SMM data, the current average delivery-to-factory price of 97% fluorite powder is 3,625 yuan/mt, remaining stable compared to last Thursday. Additionally, aluminum hydroxide prices remained stable during the week, with SMM data showing an ex-factory average price of 2,185 yuan/mt. Supported by costs and demand, sulphuric acid prices continued to rise. The raw material market for aluminum fluoride showed steady upward movement, providing some support for aluminum fluoride prices.
From the supply side, due to insufficient market confidence, the overall operating rate of aluminum fluoride enterprises remained low. According to SMM, rising raw material costs have led to poor profitability for enterprises. To ensure basic operations, some enterprises have chosen to reduce production while maintaining long-term contract supplies, which has also dampened the enthusiasm for aluminum fluoride supply. On the demand side, the demand from aluminum smelters is currently being released at a slow pace, theoretically creating potential for downstream demand growth for aluminum fluoride. However, downstream enterprises continue to adopt a purchasing-as-needed strategy, resulting in slow demand growth, which has been insufficient to fundamentally change the weak downward trend in the aluminum fluoride market. Although there is some growth potential in demand, the weak market trend for aluminum fluoride is expected to persist in the short term.
Brief Comment: Based on recent market conditions, aluminum fluoride prices have gradually become clearer, but the signing of new contracts by enterprises remains sluggish. In the short term, the supply side is affected by passive reductions, while the demand side shows weak growth, making it highly likely that the weak market trend for aluminum fluoride will continue. However, the current performance of the raw material market provides some support for aluminum fluoride prices. SMM expects aluminum fluoride prices to remain largely stable in the short term.
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