SMM December 25:
This week, aluminum fluoride enterprises focused on fulfilling orders, with mediocre market trading and stable prices. As of now, SMM aluminum fluoride prices closed at 10,200-10,500 yuan/mt, while cryolite prices remained stable, with SMM cryolite quoted at 7,000-9,000 yuan/mt.
Cost side, the delivery-to-factory price for 97% fluorite powder, a core raw material for aluminum fluoride, concentrated in the range of 3,150-3,450 yuan/mt. Market trading activity remained sluggish WoW, with downstream enterprises restocking mainly on demand, lacking significant improvement in procurement enthusiasm. Fluorite prices overall held steady, exerting no additional pressure on the aluminum fluoride cost side. Meanwhile, the price of aluminum hydroxide, another core raw material for aluminum fluoride, continued to decline. According to SMM statistics, its weighted average price was 1,697 yuan/mt, down 1.45% WoW. In the sulfuric acid market, although high and fluctuating sulfur prices provided some cost support, weakened downstream demand from mid-week and increased supply from production resumptions at some acid plants after maintenance led to a slight pullback in sulfuric acid prices in some regions. Overall, the simultaneous decline in aluminum hydroxide and sulfuric acid prices effectively alleviated cost pressure on the aluminum fluoride production side.
Supply side, affected by continuously rising production costs, aluminum fluoride enterprises faced gradually increasing production pressure, but the industry overall maintained a steady operating pace, with relatively ample supply of market goods. Demand side, operating aluminum capacity remained basically stable, providing solid rigid demand support for aluminum fluoride. However, ample inventory levels at some downstream enterprises led to an overall pullback in market procurement activity, exerting some suppressive effect on aluminum fluoride market prices.
Brief Review: The aluminum fluoride market overall showed a stable operating pattern this week. Cost side, although showing signs of weakness, alleviated some production pressure for enterprises, overall production costs remained high, limiting profit margins for enterprises without significant improvement in profitability. Currently, most enterprises in the industry are focused on executing previous orders, maintaining stable operating rates. On the other hand, downstream demand failed to provide effective support, with a slow procurement pace and sluggish market trading activity; supply and demand sides have not yet formed a synergistic support pattern. Overall, aluminum fluoride prices are expected to maintain a fluctuating trend in the short term.
