Aluminum fluoride prices to rally on greater costs, demand

SHANGHAI, May 20 (SMM) – Prices of aluminum fluoride across Chinese markets are likely to rebound in June, as costs rise and as expanding aluminium capacity grows demand.

Aluminum fluoride producers’ quotes are likely to climb to 10,000 yuan/mt, while traded prices are seen at 9,000-9,500 yuan/mt.

Traded prices touched a trough of 8,300 yuan/m at the start of this month, after continued declines from a peak of 12,000 yuan/mt hit before the Chinese New Year holiday.

Bolstered by greater demand for refrigerant in May, prices of hydrogen fluoride (HF) have stood above 10,000 yuan/mt, up from 9,000 yuan/mt. This buoyed prices of fluorite concentrate from 2,800 yuan/mt to 3,000 yuan/mt on a delivery-to-factory basis.

HP can be used to produce refrigerant while fluorite concentrate is the raw materials for producing HP and aluminum fluoride.

Higher alumina prices also contributed to greater costs for aluminum fluoride. A cut of about 2.95 million mt in alumina capacity in China boosted prices of such materials to above 3,000 yuan/mt, from a low of 2,700 yuan/mt seen at the start of April.

Demand for aluminum fluoride is also expanding. Higher aluminium prices recovered profit margins across the sector after April, and resulted in an increase in primary aluminium capacity in operation.