In Dec. 2015, China’s fluoride salt market overall was in depression. However,
since the prices have already fallen to the cost lines, and the downstream
enterprises will hoard in early 2016, CCM believes that the prices will stay
low but stable.
In Dec. 2015, China’s fluoride salt market overall was in depression. Many
manufacturers, with an intention to run down inventory at the end of a year,
down-regulated the prices of aluminium fluoride (AlF3) and cryolite: average
ex-works price of AlF3 was USD1,085/t (RMB7,056/t), down by 3.30% MoM, and that
of cryolite was USD919/t (RMB5,976/t), down by 2.96% MoM.
Ex-works prices of AlF3 and cryolite in
China, Jan.–Dec. 2015
Source: CCM
Despite the drive given by spot aluminium, the raw materials market (such as
AlF3 and cryolite) was sluggish, since the operating rate of electrolytic
aluminium segment was fairly low.
In addition, another major downstream for cryolite, the building materials
market, impacted by the slack real estate market, showed weak demand and
exerted pressure on sales of cryolite.
Under this, many small- and mid-sized manufacturers chose to suspend production
and withdraw from the business. Large enterprises also had to cut down
production: Do-Fluoride Chemicals Co., Ltd. in Oct. announced to dismantle a
AlF3 production line, and its subsidiary Do-Fluoride (Kunming) Technology
Development Co., Ltd. announced to officially suspend producing cryolite from 1
Dec.
CCM believes that the fluoride salt market has hit its bottom and will stay
stably low. This is mainly because the prices have reached the cost lines and
the downstream enterprises will stockpile raw materials in early 2016.
“In late Dec. 2015, the prices hit the bottoms already, of small possibility to
be further down-regulated”, said most of the manufacturers: “In particular, the
price of cryolite will not be cut down, since the effect made by cutting down
price to propel transaction has been proven to be very small”.
In order to cope with the production reduction and suspension in the Spring
Festival (7-13 Feb., 2016), the downstream enterprises, in the short run, will
increase the stock of raw materials. This will encourage the raw material
producers to stabilise prices.
However, the domestic fluoride salt market is hard to make a step in 2016. In
mid-Dec. 2015, the China Nonferrous Metals Industry Association gathered 14
leading electrolytic aluminium producers and held an informal discussion
meeting. During this, participants agreed to no longer restart the operation of
production capacity already suspended (around 4.91 million t/a) in 2016. In
addition, they planned to increase flexible production, to take control of
inventory.
About CCM:
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc. More about CCM, please visit www.cnchemicals.com.
China Refrigeration is one of the leading exhibitions in the world for refrigeration, air-conditioning, heating and ventilation, frozen food processing, packaging and storage. It will take place on 3 days from Thursday, 07. April to Saturday, 09. April 2016 in Beijing.
We will attend China Refrigeration Beijing in the coming month. If you would like to meet us for consultancy inChina Refrigeration Beijing, please get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.
Tag: fluoride