Dry-Processed Aluminum Fluoride Prices Down RMB 100/mt

According to a recent SMM survey, domestic dry-processed aluminum fluoride prices fell by RMB 100/mt following the Chinese New Year holiday, with current mainstream traded prices between RMB 9,400-9,600/mt.

SMM believes there are two reasons behind lower dry-processed aluminum fluoride prices after the holiday. First, production cuts and suspensions at aluminum producers in Henan Province caused local supply of dry-processed aluminum fluoride to be in surplus, and enterprises had to cut sales prices amid growing sales pressures. Second, domestic fluorite prices have fallen continuously since the end of 2011, which also led to falling dry-processed aluminum fluoride prices.

The SMM survey reveals that more than 400,000 mt of aluminum capacity was cut or suspended in Henan since the electricity price hike on December 1, 2011, and aluminum fluoride capacity was in surplus in response. An official from one local large aluminum fluoride producer said it has been closed for ten days during the Chinese New Year holiday, and only operated at about 66% of capacity after the holiday, still facing sales pressures.

On the contrary, dry-processed aluminum fluoride supply in Shandong Province was stable, and local enterprises said they can still operate at full capacity due to robust demand from Shandong’s aluminum producers, but they also said dry-processed aluminum fluoride prices were down by over RMB 100/mt from pre-holidays.