SunSirs: The Price of Cryolite Was Stable and Watch-and-See
September 20 2023 15:04:06 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, the prices of cryolite in Henan had been running smoothly recently. On September 18th, the average market price in Henan was 7,850 RMB/ton, which was the same as the average price of 7,850 RMB/ton on September 11th, and with a year-on-year increase of 2.28%.
Analysis review
The price trend of cryolite remained stable, and the manufacturer's quotation was firm. The upstream price of cryolite increased, the production cost of cryolite had increased, and the market mentality was bullish. However, the downstream was relatively resistant to high priced cryolite, and demand was sluggish. The market trading atmosphere was average, and the market was sluggish. Cryolite manufacturers maintained rational inventory, actively shipped, and the market mentality was wait-and-see. As of September 18th, the factory quotation for cryolite in Shandong region was 7,000-8,600 RMB/ton; The factory quotation for cryolite in Henan region was between 7,200-8,900 RMB/ton.
The upstream fluorite market significantly increased, with an average market price of 3,350.00 RMB/ton on September 18, an increase of 4.89% compared to the price of 3,193.75 RMB/ton on September 11. Upstream mining was tight, and companies were facing increasingly strict safety and environmental requirements. It was difficult for fluorite flotation companies to start operations, and fluorite spot prices were very tight. As a result, fluorite market prices continued to rise.
The downstream aluminum market fluctuated in a narrow range, with aluminum prices around 19,560.00 RMB/ton on September 18, an increase of 0.51% compared to the price of 19,460.00 RMB/ton on September 11. As of September 18th, the production capacity of electrolytic aluminum was operating at a high level, with good macro benefits and strong supply and demand, resulting in high aluminum ingot prices. However, recently, aluminum ingots started to accumulate inventory, with aluminum prices mainly fluctuating.
Market outlook
Cryolite enterprises had no inventory pressure, manufacturers were actively shipping, downstream demand was weak, and market follow-up was insufficient. Although raw material prices had increased, the support for cryolite was not as strong as downstream resistance to high priced cryolite. Manufacturers were cautious, and cryolite operated smoothly. Considering the cost impact, it is expected that the cryolite market will be slightly raised in the future. Specific attention should be paid to changes in manufacturers' inventory and downstream acceptance.
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