The price of aluminum
fluoride continued to increase in August 2019 in China. Generally, the bidding
price given by mainstream aluminum enterprises averaged up to USD 42.46 (RMB
300) per ton. CHALCO offered USD 1,407.92 (RMB 9,950) per ton of aluminum delivered;
the East Hope Group in Baotou and Xinjiang, Shandong Weiqiao Pioneering Group
as well as Xinfa Group offered respectively USD 1443.30 (RMB 10,200), USD 1471.60
(RMB 10,400), USD 1386.70 (RMB 9,800) and USD 1386.70 (RMB 9,800) per ton of
Affected by the strong Typhoon
Leech, devices in many mainstream aluminum fluoride factories in Shandong, a
province with high productivity in China, have recently experienced overhauls. Also,
the lead time for many aluminum fluoride factories on their orders was usually
one month. As a result, the aluminum fluoride in stock was limited.
However, the price of
aluminum fluoride began to remain stable after a short impact of typhoon Leech.
Currently, aluminum fluoride factories have quoted a price ranging from USD 1471.60
(RMB 10,400) to USD 1556.50 (RMB 11,000) per ton of aluminum fluoride while the
bidding price given by aluminum enterprises mainly ranges from USD 1386.70 (RMB
9,800) to USD 1471.60 (RMB 10,400) per ton.
In the first half of 2019, the overall
profit in aluminum fluoride industry in China was declining. After seeing losses
in April, aluminum fluoride enterprises started to make high profits in the
second half of 2019, earning USD 269.13 (RMB 1,902) per ton in August. Aluminum
fluoride enterprises are expected to earn more due to the decreasing price of fluorite, aluminum hydroxide as well as sulfuric acid.
Some sources analyze the trend of the aluminum
fluoride industry in the aspect of the cost, supply, and demand.
First, the price of fluorite, the main
material of aluminum fluoride, is expected to keep going down in the near
future. The cost of obtaining aluminum fluoride from factories will decrease.
Second, the aluminum fluoride factories
that were overhauled in summer began to operate again, with an increasing
supply in stock. However, a recent
overhaul of many aluminum fluoride factories in Shandong province affected by
Typhoon Leech led to a decreasing supply of aluminum fluoride in stock. The
lead time of one month for many aluminum fluoride factories on their orders
made the inventory of finished
Third, regarding the
demand of aluminum fluoride, the downstream electrolytic aluminum enterprises are expected to extend
their bidding prices and replenish their supplies in September, due to the
consumption of fluorite inventory.
According to a market insider, the
regulation of Shandong Environmental Protection Policy was implemented
beginning August 15. Fossil industries
may no longer start or stop production arbitrarily from the beginning of
September. The regulation may remain until after October 8. In September,
aluminum fluoride factories maintained stable production and the total market
supply experienced little change. In general, the stock price of aluminum
fluoride remained steady in mid to late August and were estimated to increase
slightly in September, while the increase might continue after September.
For more information about China’s fluoride market, please have a look at our monthly newsletter China Fluoride Materials Monthly Report.