SHANGHAI, Jan. 20 (SMM) – China exported 114,000 mt of anhydrous aluminum fluoride during 2012, up 9.6% YoY. However, the average export price declined 0.8% YoY to USD 1,431/mt.
SMM attributes China’s rising exports of anhydrous aluminum fluoride to the following three reasons. First, intensifying competition among domestic aluminum fluoride producers from excess capacity forced these producers to turn to overseas markets. Second, export prices of anhydrous aluminum fluoride dropped less sharply than domestic prices last year. Third, a better knowledge of rules in international trade inspired Chinese enterprises to accelerate in going global.
SMM believes three reasons were behind the decline in domestic and export prices of anhydrous aluminum fluoride. First, the fall in prices of major raw materials – fluorite and sulphuric acid, especially fluorite, pushed down processing costs of anhydrous aluminum fluoride. Second, aluminum smelters tried to push down input costs against their own losses. Third, producers were compelled to lower prices against intensifying competition.
SMM expects China’s anhydrous aluminum fluoride exports to continue to rise in 2013. This is because domestic producers, still confronted with overcapacity, will have to step up exports, despite growing demand for anhydrous aluminum fluoride from expanding aluminum capacity in China. On the other hand, three major factors affecting anhydrous aluminum fluoride prices in 2012 will continue to keep anhydrous aluminum fluoride prices in check.