The Weak Supply and Demand Pattern for Aluminum Fluoride Continues, with Increased Downward Pressure on Prices [[SMM Weekly Review of Fluoride Salts]]

SMM April 30th News:

This week, the aluminum fluoride market experienced mediocre trading, with aluminum fluoride prices remaining stable. As of now, SMM aluminum fluoride prices closed at 10,500-10,800 yuan/mt, and SMM cryolite prices were quoted at 6,900-7,700 yuan/mt.

From the perspective of raw material supply, the fluorite market showed a stable trend as the holiday approached. Limited mining activities and low inventory levels provided dual support, stabilizing the market fundamentals to some extent. However, as the holiday neared, the purchasing atmosphere continued to cool, and downstream demand remained weak. Chemical companies, due to slower shipment rates, significantly reduced their willingness to purchase fluorite powder, mostly adopting a wait-and-see strategy to deplete inventory, leading to overall weak market demand. SMM expects the fluorite market to maintain its current stable trend in the short term. According to the latest SMM data, the average delivery-to-factory price of 97% fluorite powder is currently 3,625 yuan/mt, down 0.22% WoW. Additionally, aluminum hydroxide prices saw a slight decline this week. SMM data shows that the ex-factory average price of aluminum hydroxide was 1,872 yuan/mt, down 0.21% WoW. Meanwhile, sulphuric acid prices continued to weaken. Overall, the support from the raw material side for aluminum fluoride continues to decline.

From the supply side, although the decline in raw material prices has alleviated cost pressures for companies and improved industry profitability, the overall profit margin remains thin. Currently, a high proportion of companies in the industry are undergoing maintenance shutdowns, with insufficient enthusiasm for production, and operating rates remain low. In the short term, market supply is unlikely to see significant growth, maintaining a low and stable level. On the demand side, although aluminum capacity has been adjusted in some regions recently, the overall industry operation remains stable. As the holiday approaches, market trading has slowed, and with the next round of tenders from downstream benchmark companies imminent, both buyers and sellers are adopting a wait-and-see attitude, leading to a significant decline in market activity.

Brief Review: The current aluminum fluoride market presents a typical weak supply and demand scenario. On the cost side, raw material prices such as fluorite and sulphuric acid continue to bottom out, weakening price support. On the supply side, companies are cautious about production, maintaining low market supply. On the demand side, the aluminum industry is conservative in purchasing, lacking growth momentum. Under the influence of multiple factors, SMM expects aluminum fluoride prices to face significant downward pressure next month, with market activity unlikely to improve significantly in the short term. Future trends will need to be closely monitored for fluctuations in raw material prices and downstream tender dynamics.