Aluminum, Lead markets post deficits; Copper ends in surplus during Jan-Oct ‘16

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the first ten months of the current year. The global primary Aluminum and Lead markets recorded marginal deficits during Jan-Oct ’16. On the other hand, copper market recorded marginal surplus during this period.

Aluminum                                                                                                                                       

The latest report published by the World Bureau of Metal Statistics (WBMS) indicates that global primary aluminum market has recorded a marginal deficit during the initial ten months of the year. As per the report, the market reported a deficit of 937,000 tons when matched with the deficit of 551,000 reported for the entire year 2015.

The production of primary aluminum has dropped by 523,000 tonnes during the tene-month period from January to October this year. The total reported stock of metal declined by 29,000 tonnes during the month of October this year. The stocks at the end of the initial ten-month period stood at 2,671 kt, which is sufficient to meet 17 days demand. It must be noted that the stock levels at the end of 2015 had stood at 3,787 kt. The combined stocks held in London, Shanghai, USA and Tokyo exchanges totaled 2,238.10 kt at the end of October, down by 1,132 kt when matched with end-2015 levels.

Global production fell modestly by 1.10% during the period from January to October in 2016. China, with estimated production of 26,182 kt, accounted for over 55% of the world production. Production in the EU-28 region dropped marginally by 0.6% and the output by NAFTA region fell by 9.7% year-on-year. The primary aluminum production for the month of October alone was 4,897.10 kt, whereas the consumption totaled 4,954.10 kt.

The Chinese net exports of aluminum semis totaled 3,082 kt during the first ten months of the year, when compared with 3,071 kt during Jan-Oct ’15.

The WBMS report also states that the global aluminum demand reduced by 172,000 tonnes during January to October this year to total 48.49 million tonnes, when compared with the corresponding period last year. The Chinese apparent demand was modestly lower by 1.1% when compared with 2015. However, EU-28 demand increased during January to October this year by 246 kt when compared with the previous year.

Copper

The global copper market has recorded a surplus of 224,000 tonnes during January to October this year. It must be noted that the worldwide copper market had reported a surplus of 264,000 tonnes for the entire year 2015.

The global mine production during the period from January to October this year totaled 17.02 million tonnes. The mine production has grown by 7.2% when matched with the corresponding ten-month period in 2015. Meantime, global refined copper output jumped higher by 3.9% over the previous year to 19.67 million tonnes. Chinese refined copper output reported significant increase of 493,000 tonnes during this period. Also, refined copper production was up sharply by 14,000 tonnes in Spain during the nine-month period.

The global copper demand during Jan-Oct ’16 stood at 19.45 million tonnes, significantly higher when compared with 18.70 million tonnes during the same period in 2015. The Chinese apparent consumption increased by 452,000 tonnes during this period to total 9.558 million tonnes. The Chinese demand accounted for just over 49% of the global demand. Also, EU-28 apparent consumption increased modestly by 10.7% from Jan-Oct ’15 levels to 2.814 million tonnes.

According to the report, reported stocks of the metal stood higher by 10,300 tonnes during the initial ten-month period of the year when compared with 2015 closing. The stocks fell marginally during the month of October this year.

The refined copper output during the month of October this year alone was 1,983.2 kt, whereas consumption during the month totaled 1,910.8 kt.

Lead

The global lead market has recorded a deficit of 64,000 tonnes during January to October this year. It must be noted that the worldwide lead market had reported a deficit of 14 kt for the entire year 2015.

The global refined lead output during Jan-Oct ’16 increased by 5.6% over the previous year to 8,953.10 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-Oct ‘16 has surged higher by 510 kt. The Chinese apparent consumption in January to October 2016 totaled 3,553.4 kt, which is higher by 377.0 kt when matched with the corresponding ten-month period in 2015. The Chinese apparent consumption represented over 39% of the global total. The apparent demand dropped by 28.50 kt in the US.

The reported stocks of the metal at the end of October this year has increased by 15 kt when matched with the stock levels during the end of 2015.

The refined lead production during the month of October ’16 alone totaled 945.4 kt, whereas the consumption totaled 954.2 kt.