China’s aluminium fluoride (ALF3) producers have been working to try to bring the industry under control for some time, but it seems from the latest data they may be succeeding finally.

May’s production of ALF3 in China fell to only 12,000 tonnes. The usual level is around 50,000t. April was down to 30,000t, so the slowdown actually started at the end of March.

It was at about this time that the major producers came to an agreement to slash production, in an attempt to improve the price.

Export data is not available until the end of the month, but the figure for April was 11,000t, which is about the regular level. We estimate that China’s domestic primary aluminium industry uses around 35,000t per month. Clearly this strategy of closing capacity is going to have an immediate effect on price and supply for both the domestic and the export market.

We will keep watching closely.