Price trend in March

According to the monitoring of bulk list data from Business Society, the price trend of cryolite in March decreased. As of March 31st, the average market price in Henan Province was 7825 yuan/ton, a decrease of 1.88% compared to the beginning of the month price of 7975 yuan/ton, and a year-on-year increase of 3.64%.

In March, the domestic cryolite market was relatively weak, and the prices of cryolite enterprises were generally lowered during the month. Some enterprises kept their prices stable based on their own shipment situation, resulting in lower fuel coal prices, lower cryolite costs, weaker terminal downstream destocking, and weaker demand for cryolite. In order to stimulate shipment, cryolite prices were lowered.

Analysis of upstream and downstream market conditions

On the upstream side, the domestic fluorite market rose in March, with mining enterprises facing safety and environmental requirements, resulting in low operating rates and tight spot supply of fluorite. At the same time, the demand side hydrofluoric acid price slightly increased, which brought some benefits to the fluorite market. The price trend of fluorite rebounded, and as of the end of the month, the average price of fluorite was 3037.50 yuan/ton, an increase of 1.89% compared to the price of 2981.25 yuan/ton at the beginning of the month.

The downstream aluminum market fell first and then rose in March. At the end of the month, the average price of domestic aluminum ingots in the East China market was 18676.67 yuan/ton, an increase of 1.41% compared to the average market price of 18416.67 yuan/ton at the beginning of the month. After the aluminum price rebounded in January, it fell in mid February. After the Federal Reserve raised interest rates in March, the aluminum price stopped falling and stabilized upward. In March, the overall aluminum price walked out of the “V” shape.

Future Market Forecast

Cryolite enterprises have no inventory pressure, and their raw material supply is tight. Support for cryolite is still acceptable, and downstream demand follows up. The enterprise’s shipments are average, and the market supply and demand are stagnant. It is expected that the cryolite market will consolidate in the short term.