The tug-of-war between raw material support and downstream price-driving continues, with aluminum fluoride prices largely stable [SMM Weekly Review of Fluoride Salts]

SMM August 14 News:

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

From the perspective of raw materials, the current delivery-to-factory prices of 97% fluorite powder for aluminum fluoride enterprises are concentrated in the 3,000-3,300 yuan/mt range, and the fluorite market has transitioned smoothly this week. Currently, due to limited mine operations in some regions, the supply of fluorite has tightened, and there is a strong atmosphere of hoarding and reluctance to sell in the market. Coupled with the overall recovery trend in downstream demand, both supply and demand are jointly supporting the fluorite price, with expectations of stabilization and rebound. SMM data shows that the current average delivery-to-factory price of 97% fluorite powder is 3,142 yuan/mt, and prices have remained stable this week. Aluminum hydroxide prices have also been relatively stable this week, with SMM recording an average ex-factory price of 2,092 yuan/mt. The sulphuric acid market is currently fluctuating rangebound at a high level in the short term, supported by rising raw material prices. Overall, the aluminum fluoride raw material market has been generally stable this week.

In terms of supply, due to limited profit margins and persistently high production costs, enterprises have shown low enthusiasm for production, with capacity utilization rates remaining low for an extended period. Many enterprises have chosen to reduce production to cope with adverse conditions, and some have even halted production activities. From the demand perspective, despite the relatively stable operating rates in the downstream aluminum industry, buyers have generally adopted a cautious attitude, limiting purchases to basic needs, with no large-scale orders observed. A comprehensive analysis indicates that currently, both sellers and buyers show insufficient support for aluminum fluoride prices.

Brief Commentary: Currently, the aluminum fluoride raw material market is stable with some increases, and overall cost support has risen. However, aluminum fluoride prices have not shown an upward trend, increasing production pressure on enterprises. Under cost support, enterprises' reluctance to budge on prices has intensified, but influenced by downstream aluminum enterprises' drive to lower prices, a price increase in the short term is difficult to achieve. Overall, aluminum fluoride prices are expected to remain stable in the short term.