New aluminum fluoride orders after CNY holidays have been muted, and aluminum fluoride prices are expected to continue to fall [SMM Analysis]

With the end of the CNY holiday, the fluoride salt market is mainly stable. As of Feb 20, SMM aluminum fluoride was quoted at 8,600-9,300 yuan/mt, and SMM cryolite was quoted at 6,500-7,500 yuan/mt. The raw material market is generally stable, and fluoride prices have not changed yet. According to SMM research, the prices of fluorite from aluminum fluoride companies are mostly concentrated at 3,150-3,350 yuan/mt, which is stable from before the CNY. Downstream companies resume production and mainly consume early inventory. The fluoride market is sluggish, and fluoride prices are expected to remain stable in the short term. After the holiday, sulfuric acid prices were stable and rose slightly, mainly because traders were more active after the holiday. Overall, the raw material market rose slightly, pushing up the aluminum fluoride prices. After the CNY, most aluminum fluoride companies mainly maintain old orders, and the signing of new orders is relatively low. According to SMM, some companies are currently expected to reduce production due to fewer orders and poor profits, and the purchasing sentiment of downstream aluminum companies was poor. Overall, the price of sulfuric acid at the raw material has increased slightly, the price of fluorite has been temporarily stable, and the cost of aluminum fluoride has increased slightly. However, the recent market transactions have been sluggish, and the transaction price has been the same as before the holiday, further compressing the profits of aluminum fluoride companies, and some companies have expectations for production cuts. Near the end of the month, downstream companies are in a wait-and-see mood, and the aluminum fluoride market supply and demand are both weak. SMM predicts that aluminum fluoride prices may continue to decline next month.