SMM, March 19: This week, Chinese aluminum fluoride enterprises mainly focused on order deliveries, with aluminum fluoride prices holding steady. As of now, SMM aluminum fluoride prices closed at 10,180-10,450 yuan/mt; cryolite prices also held steady, with SMM cryolite quoted at 7,000-8,500 yuan/mt. Raw material side: Prices of key raw materials for aluminum fluoride continued to rise. Specifically, the delivery-to-factory price of 97% fluorite powder remained stable, currently concentrated in the range of 3,150-3,450 yuan/mt. During the Two Sessions, mining at northern mines was restricted, leading to a temporary tight supply of fluorite raw ore; some beneficiation plants showed strong sentiment to hold prices firm due to relatively low inventory levels, and downstream hydrofluoric acid enterprises slightly recovered in operating demand after resuming work following the holiday. SMM expected fluorite prices to hold up well in the short term. Aluminum hydroxide prices edged up steadily, with the current SMM weighted average price at 1,673 yuan/mt, up 1.52% WoW. The sulphuric acid market remained firm, and prices continued to rise amid higher costs, tightening supply, and strong demand. Overall, the raw material side of aluminum fluoride moved higher, and production pressure on enterprises increased significantly. Supply side showed a pattern of rigid cost increases, deeply pressured profitability, and weak willingness to operate. Recently, prices of key raw materials such as fluorite, sulphuric acid, and aluminum hydroxide continued to rise, significantly pushing up aluminum fluoride production costs. The industry was caught in a squeeze from both costs and selling prices, with enterprises generally operating at a loss. Production enthusiasm was hit hard, overall industry operating rates remained in the doldrums, and actual supply increases were limited. On the demand side, operating aluminum capacity downstream remained stable, forming a rigid demand base for aluminum fluoride; however, enterprises mainly restocked for rigid demand and purchased as needed, with cautious procurement and insufficient demand elasticity to boost prices. Brief comment: This week, prices of key raw materials such as fluorite and sulphuric acid held up well, and the cost side continued to rise, significantly increasing production pressure on enterprises; in March, the aluminum fluoride tender price of a downstream benchmark enterprise was finalized, down 200-370 yuan/mt MoM, and the spot market also moved in the doldrums under its guidance. At present, the industry is facing a two-way squeeze of rising costs and selling prices under pressure, narrowing profit margins and dampening production enthusiasm. Fundamentally: Cost side: fluorite and sulphuric acid prices remained firm, providing clear bottom support for aluminum fluoride. Supply side: industry operating rates stayed in the doldrums, with no significant increase in production, and overall supply and demand remained subdued. Demand side: rigid demand from aluminum remained stable, but there was no obvious incremental growth, and procurement was mainly as needed. Overall, the strong support effect from fluorite and sulphuric acid on the cost side became more prominent, coupled with low industry operating rates and shrinking supply. Aluminum fluoride's price center is expected to move steadily higher next month, showing a mild strengthening trend. Going forward, close and continuous attention should be paid to dynamic changes on the raw material cost side, as well as marginal adjustments in the procurement pace of downstream aluminum enterprises.

[SMM Aluminum Flash News] On March 5, the Sanming Municipal Ecology and Environment Bureau planned to approve and publicize the Environmental Impact Report for the fluorite raw ore processing and production project of Sanming Yingcaisheng Industry and Trade Co., Ltd. The project will build a fluorite raw ore processing and production line, procure equipment such as crushers, wet ball mills, classifiers, and flotation machines, as well as supporting environmental protection treatment facilities, and carry out production processing of fluorite raw ore including crushing, ball milling, and flotation. Annual processing capacity: 80,000 mt of fluorite raw ore.

[SMM Aluminum Flash News] Entering March, support from raw materials such as fluorite and sulphuric acid remained strong. Rising raw material costs increased production pressure, while falling downstream tender prices weighed on selling prices. Enterprises’ profit margins were squeezed from both sides, dampening production enthusiasm. Overall, although the dual-weak supply-demand pattern has not yet improved significantly, higher fluorite and sulphuric acid prices on the cost side have provided strong support; therefore, aluminum fluoride prices are expected to strengthen next month.

[SMM Aluminum Flash News] Recently, an international freight block train branded “Yunnan” and fully loaded with Lao fluorite powder departed from Kasi, Laos, traveled via the China–Laos Railway, arrived at Kunming Tengjun International Land Port on March 6, and was then transported onward to Zibo, Shandong through a “rail-to-rail intermodal” model, providing sufficient raw material support for domestic industrial production and industrial development. In March, four additional trains carrying about 3,000 mt of fluorite powder will arrive at Tengjun International Land Port in succession, gradually forming a normalized, stable, and scaled cross-border cargo supply system.

[SMM Aluminum Express] Fluorite prices stabilized after a slight increase at the beginning of February. The fluorite market remains in a state of weak supply and demand, making it difficult to drive a rapid price increase in the short term. According to SMM data, as of February 27, the average delivery-to-factory price for SMM 97% fluorite powder reached 3,275 yuan/mt, up 0.52% from January 30.

Overall, cost support remains, but has not yet formed strong upward momentum, combined with aluminum enterprises' strong push for lower prices, aluminum fluoride prices in March are expected to be mainly stable with a slight weakening trend.