Production curbs bolster China’s aluminium fluoride prices

SHANGHAI, Aug 13 (SMM) – Aluminium fluoride prices in the Chinese market have been holding steady since the beginning of this month after some producers decided to control their output, SMM learned.

Major fluorochemical enterprises were heard to have convened in mid-June in Hengshan, Hunan province and agreed to operate in a staggered pattern to support aluminium fluoride prices at the 9,000 yuan/mt ex-work level. These producers suspended production every other month and kept only half of overall capacities in operation.

Aluminium fluoride prices rebounded after the production curbs took effect. Some offers were even heard at over 10,000 yuan/mt as supply in the market shrank. This compared to 8,500 yuan/mt heard in early June.

China’s overall aluminium fluoride capacity stood at some 2 million mt. The relatively small industry made it easier to effectively conduct production cut.

Fluorite supply is likely to shrink as authorities intensify efforts in the crack-down of open pit mining. This is set to provide some support to aluminium fluoride prices.

Meanwhile, the prices are likely to see minimal impact from winter production cuts given the existing curbs.