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.

SMM February 26: This week, aluminum fluoride enterprises focused on fulfilling orders. Approaching month-end, the market awaited new price guidance, resulting in sluggish trading activity and stable prices. To date, SMM aluminum fluoride prices closed at 10,480-10,750 yuan/mt; cryolite prices remained largely stable, with SMM cryolite quotes at 7,000-9,000 yuan/mt. Raw material side: Prices of core raw materials for aluminum fluoride were largely stable. Specifically, delivery-to-factory prices for 97% fluorite powder held steady, currently concentrated in the range of 3,100-3,400 yuan/mt. Supply side, production halts in north China due to low temperatures and the Chinese New Year holiday reduced market supply. Coupled with routine environmental and safety supervision, small and medium-sized mines experienced unstable operations. Imports were mainly medium and low-grade, with limited high-grade supply, prolonging structural tightness. Although supply contracted, high inventory in some regions and sluggish shipments exerted some downward pressure on prices. Demand side remained weak, with core downstream hydrofluoric acid industry operating at low rates, resulting in weak digestion of fluorite powder and lack of strong momentum. Current market transactions were sluggish, and prices saw no major adjustments. Aluminum hydroxide prices held steady, with the SMM weighted average price at 1,611 yuan/mt, flat MoM. The sulfuric acid market continued to fluctuate at highs, providing some cost support for aluminum fluoride. Overall, rigid cost support for aluminum fluoride raw materials remained. Supply-demand side: In terms of supply, some previously idled enterprises in the domestic aluminum fluoride industry gradually prepared to resume production after the holiday, raising expectations for supply recovery. However, some enterprises conducted planned maintenance, and high costs constrained production enthusiasm. Industry-wide operating rates remained in the doldrums, with relatively ample spot supply in the market. Demand side, operating capacity in the downstream aluminum industry stayed stable, providing rigid support for aluminum fluoride demand. Post-holiday, downstream enterprises gradually resumed procurement pace, and market activity recovered. However, cautious procurement sentiment led enterprises to restock as needed and maintain low inventory, resulting in limited actual purchases and insufficient support for aluminum fluoride price increases. Brief comment: Current stable trends in raw material prices such as fluorite and sulfuric acid provided strong bottom support for aluminum fluoride prices. Supply side, ample spot supply and post-holiday production resumptions were expected to increase supply further. Demand side, only rigid restocking from the aluminum industry drove a slight rebound, lacking significant boosts. Considering multiple factors, SMM expected aluminum fluoride prices to fluctuate rangebound in the short term. Future monitoring should focus on dynamic changes in raw material costs and marginal adjustments in procurement pace of downstream aluminum enterprises.

In February (February 8 to March 11), the trades in the aluminum fluoride market were moderate.

According to SMM survey data, the price of fluorite purchased by aluminum fluoride enterprises mainly ranges from 3,150 to 3,550 yuan per ton.

The fluorite prices in the raw material market remained stable this week. According to SMM survey data, the delivered price of fluorite to aluminum fluoride enterprises is mainly concentrated in the range of 3,150 to 3,550 yuan per ton. In terms of supply, the mining situation remains tight, and the increase in fluorite supply is limited. In addition, as the end of the month approaches, downstream enterprises are conducting bidding pricing, and the market sentiment is cautious. By Thursday of this week, the average price of fluorite recorded by SMM was 3,383 yuan per ton, stable compared with that of last Thursday. Apart from the temporary stability of fluorite prices, the prices of sulfuric acid and aluminum hydroxide have both increased. Overall, the support for the raw material side of aluminum fluoride is relatively strong.