Chinese aluminum fluoride producers watch the export market
2017-02-15 08:36:10 【Print】
BEIJING (Asian Metal) 15 Feb 17 - After the Chinese Spring Festival holiday, Chinese aluminum fluoride producers continue to watch the export market and are prudent in export deals due to lower prices below USD1,000/t FOB China. Producers still focus on the domestic market and hold firm offers of RMB7,500-7,800/t (USD1,093-1,136/t) DDP in spite of soft demand this week.
A Chinese aluminum fluoride producer reported that they exported around 6,000t of the material in the first half of 2016. “We have no plan to deal with export deals, as the price is much lower than Chinese domestic market,” said the source, adding that they now carry out contracts at around RMB7,200/t (USD1,049/t) DDP in the local market signed late last year.
Currently, the producer offers RMB7,800/t (USD1,136/t) DDP and believes the price will be concluded late this month, as fluorspar prices have touched around RMB1,800/t (USD262/t) DDP up from RMB1,700/t (USD248/t) DDP last month . In addition the source explained that aluminum fluoride supply is tight. “We may not consider export deals unless the export price is RMB100-200/t (USD15-29/t) higher than the domestic price,” said the source, adding that overseas buyers now ask for price below USD1,000/t FOB China.
Based on the capacity of 90,000tpy, the plant is running at the monthly output of around 3,000t.
Another aluminum fluoride producer in China with annual capacity of 70,000t confirmed that they did not export the material recently. “A buyer from the US asked for the price below USD1,000/t FOB China,” said the source, noting that they cannot accept the low price, which is much lower than Chinese domestic price of RMB7,500/t (USD1,093/t) DDP . In 2016, they exported around 700t of the material.
The producer now mainly carries out contracts signed late last year at around RMB7,200/t (USD1,049/t) DDP, but they now offer RMB7,500/t (USD1,093/t) DDP. Given the low aluminum fluoride inventory and firm fluorspar prices, the source believed that new concluded price will be at least RMB7,500/t (USD1,093/t) DDP.
The plant is running at the output of 6,000tpm and holds no stock . From mid-February, China will restart environmental protection inspection in some regions including Henan and Shandong, so aluminum fluoride producers may cut production again in the following weeks.
China's active alumina producers' days sales of inventory statistics by province by month