September tender price hikes implemented; aluminium fluoride continues its strong trend

This week, benchmark downstream enterprises finalised their aluminium fluoride tender prices, and aluminium fluoride prices moved upward. As of now, SMM mainstream quotations for aluminium fluoride stand at RMB 11,500-12,000 per tonne; cryolite spot prices firmed, with SMM cryolite quotations at RMB 8,000-9,000 per tonne.

Raw material side: This week, aluminium fluoride raw material prices diverged. Upstream 97 per cent fluorite wet powder market rose steadily, with mainstream delivered prices at RMB 3,350-3,850 per tonne.

Supply side, high-pressure safety inspections at mines continued unabated: Inner Mongolia implemented the "Double Ten Measures" inspections, Zhejiang's small mine closure policy took effect, compliance checks in Jiangxi and Fujian remained ongoing, mine production resumptions were delayed, fluorite inventory stayed low, spot supply was tight, and cargo was prioritised for long-term contracts; Mongolian imports rebounded somewhat, only slightly easing supply pressure in the north.

Demand side, hydrogen fluoride supply contracted, and September long-term contract prices were raised to above RMB 15,000 per tonne, driving some restocking for rigid demand; refrigerant operating rates were restricted, the lithium battery industry chain remained weak, and downstream high-price purchase willingness was limited, with buying on an as-needed basis. Fluorite consolidated on a strong note at high levels within a narrow range.

For other raw materials, China's aluminium  hydroxide market was largely stable, with SMM weighted average price at RMB 1,650 per tonne, unchanged W-o-W; the sulphuric acid market loosened from earlier highs, with transaction centre continuing to edge lower. Overall, raw material prices showed mixed changes, and some price pullbacks partially offset cost pressure, but with fluorite holding at high levels, comprehensive production costs for aluminium fluoride remained elevated.

Supply side: The industry remained in a weak cycle of persistently high costs, production losses, and low operating rates. High fluorite prices continued to underpin aluminium fluoride production costs, making it difficult to restore industry profitability. Most enterprises continued to step up equipment maintenance and flexible production cuts, keeping overall industry operating rates at low levels.

At this stage, enterprises in the market generally adopted a contractionary operating strategy, prioritising delivery of long-term contract orders. New effective supply in the market was limited, and spot cargo remained tight overall. Demand side: Downstream aluminium industry operating capacity stayed high, generating sustained rigid demand for aluminium fluoride and providing bottom support for market prices.

SMM comments: This week, aluminium fluoride raw material trends diverged: fluorite prices remained firm at high levels, providing strong cost support; aluminium hydroxide and sulphuric acid prices pulled back slightly, partially offsetting cost pressure. However, comprehensive production costs in the industry remained high, corporate profitability was narrow, production enthusiasm was insufficient, industry operating loads were low, and supply remained tight overall.

Demand side: Aluminium enterprises maintained high-load operations, providing rigid support for aluminium fluoride consumption, but procurement lacked elasticity, and there was no concentrated restocking catalyst in the market, limiting upward momentum in spot prices. Price side: During the week, benchmark enterprises finalised September tender prices, raising them by RMB 300-500 per tonne overall. High-grade aluminium fluoride transaction centre climbed to RMB 12,000-12,500 per tonne, with cost-driven price increases transmitting smoothly.

In addition, recent gains in anhydrous hydrogen fluoride prices provided some positive support to the broader fluorochemical industry chain. Overall, the current aluminium fluoride market presents a pattern of "cost support, tight supply, and inelastic demand." Going forward, focus should be on fluorite raw material price fluctuations and the pace of restocking by aluminium enterprises.

Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.