SunSirs: Cryolite Market Ran Smoothly This Week (June 14-20)

Price trend

According to the commodity market analysis system of SunSirs, the price of cryolite in Henan Province was running smoothly. On June 20, the average market price in Henan Province was 7,850 RMB/ton, unchanged from the average price of 7,850 RMB/ton on June 14, and up 3.29% compared with the same period last year.

Analysis review

This week, the cryolite market was stable, and the manufacturer's quotation was stable. Upstream construction continued to be low, raw material support was good, cryolite production cost was high, many on-site devices operated at low load, enterprises had no pressure on inventory, and actively shipped, but the downstream was more resistant to high prices, mainly purchasing on demand. Cryolite enterprises kept a wait-and-see attitude, operated steadily, and the market negotiation atmosphere was fair. As of June 20, the ex factory quotation of Cryolite in Shandong Province was 7,000-8,600 RMB/ton; The ex factory quotation of Cryolite in Henan was 7,200-89,00 RMB/ton.

The upstream fluorite market was stable and on the watch. As of June 20th, the average market price was 3,136.25 RMB/ton, which was unchanged from the price of 3,136.25 RMB/ton on June 14th. The operating rate of fluorite enterprises was low, and the increase in spot supply was limited. In addition, mining enterprises were facing increasingly strict safety and environmental requirements, which limited the increase in operating rate of fluorite. The price of fluorite was strong and the downstream procurement needed to follow up. The fluorite market was on the sidelines.

The downstream aluminum market fluctuated and rose. On June 20th, the aluminum price was around 18,870.00 RMB/ton, an increase of 1.45% compared to the price of 18,600.00 RMB/ton on June 14th. Terminal consumption was limited, and downstream market entry follows up on demand. Recently, the market trading atmosphere has improved, and some regions have significantly reduced inventory, leading to an upward trend in aluminum prices.

Market outlook

Cryolite enterprises had no pressure on inventory. Upstream raw materials continued to be favorable, supporting the stable operation of cryolite prices. Downstream parties followed up as needed. The trading and investment atmosphere in the market was fair, and the market supply and demand were relatively balanced. It is expected that cryolite market will be mainly wait-and-see in the later period, and the price will fluctuate in a range. In the future market, specific attention will be paid to the changes of manufacturers' inventory.

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