Research shows that in April 2021, 17 domestic dry process aluminum fluoride production enterprises completed a production capacity of 1.018 million tons (in production), and as of April 25, the operating capacity for the month was 186000 tons. It is expected that the average operating rate at the end of the month (the fourth week of April) will be 11.3%, a decrease of 21% compared to the beginning of the month (the first week of April), and the average operating rate for the month is expected to be 18.3%. In addition, seven wet process aluminum fluoride production enterprises have built a production capacity of 135000 tons and an operating capacity of 90000 tons, with an operating rate of 66.7%.
Throughout April, dry process aluminum fluoride enterprises were mostly in a state of shutdown, and the production and operation level of the entire industry was at a low level. The dry process enterprises that entered the shutdown early in March include: Duofuduo, Yingfujinhe, Jiangxi Fufeng, Bofeng Lizhong, and Jiaozuo Jinhongli; The dry process enterprises that entered the shutdown in April include Dongfang Shaoxing, Baiyin Zhongtian, Shandong Zhaohe, Jinyang High tech, Hunan Nonferrous Metals, Chengde Yingke, Pingguo Hetai, and the wet process enterprises are Hubei Jinfu and Hubei Xiangfu.
In April, domestic dry process aluminum fluoride gradually entered a shutdown state in the first half of the month, with a low operating rate, involving a shutdown capacity of 938000 tons and a wet process shutdown capacity of 46000 tons. The aluminum fluoride market has been declining since April, with large electrolytic aluminum buyers not actively purchasing and bidding prices guided below 8000. The social inventory of aluminum fluoride is high, and the news and facts of production suspension have not stabilized the market in the first place. In the later stage, the market mainly focuses on digesting social inventory, and it is expected that the market will be difficult to quickly recover next month, and most enterprises lack motivation to resume work. In the first half of the year, 105000 tons of aluminum fluoride production capacity will be put into operation in the north, and the already excess capacity will also face the impact of new production capacity.