Marginal Recovery in Aluminum Fluoride Market Amid Weak Supply-Demand Dynamics and Cost Competition

Published: May 16, 2025 17:40

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[Marginal Improvement in Aluminum Fluoride Market Amid Weak Supply and Demand, with Intensified Cost Competition Due to Diverging Raw Material Prices] The current aluminum fluoride market continues to exhibit weak supply and demand, but signs of marginal improvement emerged during the week. On the cost side, raw material prices diverged, with weakening fluorite prices and strengthening aluminum hydroxide and sulphuric acid prices creating a tug-of-war between longs and shorts, significantly increasing the difficulty for enterprises to control costs. On the supply side, enterprises maintained a "produce based on sales" strategy due to profit constraints, keeping market supply at a low but stable level. On the demand side, purchases in the aluminum industry were conservative, with demand lacking growth momentum under the dominance of rigid demand. During the week, as the trend in aluminum fluoride prices became clearer, tenders by aluminum enterprises progressed in an orderly manner, significantly boosting trading activity. Shipments increased WoW, reversing the previous sluggish atmosphere and signaling a mild recovery. Overall, the market remains in a state of weak supply-demand balance. The short-term trading improvement brought about by increased tender volumes has injected periodic vitality into the market. The medium and long-term trend requires continuous monitoring of raw material cost transmission, dynamic changes in aluminum capacity, and the strength of demand-side recovery.

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