Influenced by Rising Price of Aluminum Hydroxide and Fluorite, Aluminum Fluoride Surges by 2,500 Yuan per Tonne

During this period, the tender pricing for July by benchmark downstream primary aluminum enterprises was finalized, and aluminum fluoride market prices continued to weaken. The tender price for benchmark enterprises in July decreased by 30 yuan/mt compared to the previous period, with a range of 9,600-9,670 yuan/mt. Currently, the aluminum fluoride market continues to exhibit a pattern of weak supply and demand: After entering July, prices of raw materials and finished products have declined simultaneously, with no improvement in corporate profitability. Most enterprises are experiencing losses, with operating rates remaining low and unlikely to improve in the short term. There is currently no positive support on the demand side, and the market is primarily transitioning with stable prices. Coupled with the expectation of declining raw material prices in July, it is anticipated that aluminum fluoride prices will continue to weaken next month.

During this period, the tender pricing for June by downstream benchmark aluminum enterprises was finalized. The market price of aluminum fluoride continued to weaken, with the tender price of benchmark enterprises in June declining by 150-200 yuan/mt to 9,630-9,700 yuan/mt. Currently, the aluminum fluoride market continues to experience weak supply and demand. After entering June, prices of both raw materials and finished products have declined, and corporate profitability has not improved. Most enterprises are experiencing losses, with low operating rates that are unlikely to increase in the short term. Coupled with the absence of positive factors on the demand side, aluminum fluoride prices are expected to remain stable in the short term. Additionally, with the anticipated decline in raw material prices in June, prices are expected to remain weak next month.

Aluminum fluoride export orders at the beginning of 2025 performed moderately, up 21.27% YoY. Especially, orders to India, South Korea, and Mozambique saw increases of over 1,000 mt compared to the same period last year, with the increase in orders to India exceeding 9,000 mt. Meanwhile, orders to the UAE, Malaysia, and Bahrain saw significant reductions, with decreases ranging from 1,000 to 3,500 mt. In terms of export prices, aluminum fluoride export order prices have been in a pullback since 2025, falling to around $1,560/mt by February, which is relatively better compared to domestic prices. On the domestic market, downstream enterprises of aluminum fluoride had a strong sentiment to lower prices, while raw material prices continued to rise. In March, domestic aluminum fluoride prices further declined, squeezing profit margins in domestic orders. This situation prompted companies to shift more focus to exports to seek greater profit margins and more stable market demand. Overall, the aluminum fluoride industry in early 2025 showed a "hot outside, cold inside" pattern, with companies alleviating domestic pressure through export strategies. SMM expects that aluminum fluoride export orders will maintain a steady growth trend in March, but prices may continue to fall.