The raw material market shows mixed performance, and aluminum fluoride prices remain stable in the short term [SMM Aluminum Fluoride Weekly Review]

SMM News on July 10:

This week, aluminum fluoride enterprises have focused on fulfilling orders, with aluminum fluoride prices remaining stable. As of now, SMM aluminum fluoride prices have closed at 9,600-9,800 yuan/mt, and SMM cryolite prices are quoted at 7,500-9,500 yuan/mt.

From the perspective of raw material supply, the current raw material market is mainly characterized by weakness, with continuous relief of cost-side pressure. The fluorite market remains sluggish. Currently, the operating rate of mines in the north is moderate, and combined with the supplement of imported sources, the market supply side is relatively abundant. On the demand side, the price of hydrofluoric acid continues to decline, and enterprises have extremely low enthusiasm for purchasing high-priced fluorite, mostly only maintaining rigid demand restocking. Some small and medium-sized hydrofluoric acid plants have even suspended fluorite purchases. The continuous weakness on the demand side has led to a lack of upward momentum for fluorite prices. As of now, the average delivery-to-factory price of 97% fluorite powder is 3,142 yuan/mt. This week, prices have continued to be weak, down 3.08% MoM. Supported by the increase in alumina prices, aluminum hydroxide prices have turned from decline to increase this week. SMM recorded an average ex-factory price of 2,052 yuan/mt, up 1.63% MoM. The sulphuric acid market is currently in a state of high-level narrow fluctuations in the short term due to the influence of high costs and structural adjustments in demand. Overall, the aluminum fluoride raw material market has experienced mixed changes, but the overall trend is downward.​

The aluminum fluoride market continues to be in a sluggish pattern with weak supply and demand: On the supply side, affected by profit pressure and high costs, enterprises lack enthusiasm for production, and the capacity utilization rate has been running at a low level for a long time. On the demand side, although the operating rate of downstream aluminum is good, purchasing sentiment is cautious, mainly focusing on rigid demand. Overall, the current support from both supply and demand sides for aluminum fluoride prices is relatively weak.

Brief Commentary: Recently, the aluminum fluoride raw material market has shown mixed trends. Fluorite prices continue to hit bottom, aluminum hydroxide prices show a relatively strong trend, and sulphuric acid prices remain high. The overall support from the cost side has declined. With the simultaneous decline in raw material and finished product prices, enterprise profitability has not improved. Most enterprises are in a state of losses, with operating rates maintained at a low level and difficult to improve in the short term. There is no positive support on the demand side. Overall, it is expected that aluminum fluoride prices will remain stable in the short term.