This week, with the tender price for aluminium fluoride set by a leading downstream enterprise, the market received guidance, and overall prices rose. As of now, SMM aluminium fluoride prices closed at RMB 10,200-10,500 per tonne, and SMM cryolite was quoted at RMB 7,400-9,000 per tonne.
Raw material side, the delivery-to-factory price for 97 per cent fluorite powder, a core raw material for aluminium fluoride, was concentrated in the range of RMB 3,150-3,450 per tonne. Trading activity in the market was mediocre this week, downstream enterprises showed low procurement enthusiasm, and fluorite prices pulled back. Additionally, the price of aluminium hydroxide, another core raw material for aluminium fluoride, continued to decline this week. The weighted average price compiled by SMM was RMB 1,754 per tonne, down 0.4 per cent w-o-w. The sulphuric acid market performed strongly; supported by tightening supply and cost support, it held up well. The continued strength in sulphuric acid prices has become a core factor driving the overall production cost of aluminium fluoride higher.
Supply side, aluminium fluoride prices increased at the beginning of the month, enterprise profitability improved, so aluminium fluoride producers' operating enthusiasm improved slightly, and supply increased slightly. Demand side, operating aluminium capacity remained basically stable, providing a solid foundation for the rigid demand for aluminium fluoride. However, as some enterprises held sufficient inventory, overall procurement activity declined, exerting some downward pressure on market prices.
Brief Review: This week, the December tender pricing from a leading downstream aluminium enterprise was officially finalised. The tender price overall showed an upward trend, ultimately settling in the range of RMB 10,200-10,300 per tonne. With the tender price clarified, aluminium fluoride prices generally increased by RMB 250-300 per tonne following the guidance. Cost side, the price of sulphuric acid, a core raw material for aluminium fluoride, remained strong, providing solid support for aluminium fluoride costs; meanwhile, the price of another key raw material, fluorite, pulled back, alleviating production pressure for enterprises to some extent and driving a slight improvement in industry profitability, which subsequently boosted operating enthusiasm.
Demand side performance remains the main constraint in the current market; downstream procurement pace showed no significant improvement, the overall demand atmosphere remained mediocre, and effective synergistic support from both supply and demand sides has not yet formed. Going forward, close attention should be paid to dynamic changes in raw material costs and adjustments in the downstream procurement pace.
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.
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