Global Aluminum Deficit Widened In Jan-Apr ‘17; Copper Slipped to Deficit

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the initial four-month period of the current year. The global primary Aluminum and Lead markets recorded deficits during Jan-Apr ’17. Meantime, copper market too slipped to minor deficit during the four-month period from January to April this year.

Aluminum                                                                                                                                       

The latest report published by the World Bureau of Metal Statistics (WBMS) indicates that global primary aluminum market deficit has further expanded during the initial four months of 2017. As per the report, the market reported a deficit of 683,000 tons when matched with the deficit of 1.096 million tons reported for the entire year 2016.

The production of primary aluminum has surged higher by 1.295 million tonnes during the four-month period from January to April this year. The total reported stock of metal declined further by 175,000 tonnes during the month of March alone. The stocks at the end of the initial four-month period stood at 2,471 kt, which is sufficient to meet 15 days demand. It must be noted that the stock levels at the end of 2016 had stood at 2,761 kt. The combined stocks held in London, Shanghai, USA and Tokyo exchanges totaled 2,059 kt at the end of April, down by 266 kt when matched with December 2016 levels.

Global production rose considerably by 7.1% during the period from January to April in 2017. China, with estimated production of 10,967 kt, accounted for just under 56% of the world production. Production in the EU-28 region rose marginally by 1.9% whereas the output by NAFTA region fell by 4.7% year-on-year. The primary aluminum production for the month of April alone was 4,941.8 kt, whereas the consumption totaled 5,118.3 kt.

The net exports of Chinese aluminum semi manufacturers totaled 1,220 kt during the first four months of the year, when compared with 1,190 kt during Jan-Apr ’16.

The WBMS report also states that the global aluminum demand increased by 1.580 million tons during January to April in 2017 to total 20.35 million tonnes, when compared with the corresponding four-month period in 2016. The Chinese apparent demand was modestly higher by 11% when compared with 2016. However, EU-28 demand stood higher during January to April this year by 150 kt when compared with the comparable period a year before.

Copper

The global copper market has recorded a minor deficit of 5 kt during January to April this year. It must be noted that the worldwide copper market had reported deficit of 69 kt for the entire year 2016.

The global mine production during the period from January to April this year totaled 6.55 million tonnes. The mine production has declined marginally by 0.6% when matched with the corresponding four-month period in 2016. Meantime, global refined copper output declined marginally by 0.6% over the previous year to 7.67 million tonnes. Chinese refined copper output reported significant increase of 144,000 tonnes during this period. However, the increase in Chinese production was offset by a production decline of 144,000 tonnes in Chile during the four-month period.

The global copper demand during Jan-Apr ’16 stood at 7.67 million tonnes, slightly lower when compared with 7.87 million tonnes during the same period in 2016. The Chinese apparent consumption dropped by 303,000 tonnes during this period to total 3.659 million tonnes. The Chinese demand accounted for just under 48% of the global demand. Also, EU-28 apparent consumption declined by 4.4% from Jan-April ’16 levels to 1,131.6 kt.

According to the report, reported stocks of the metal stood higher by 82,000 tonnes during the initial four-month period of the year when compared with 2016 closing. The reported stocks declined during the month of April.

The refined copper output during the month of April this year alone was 1,919.9 kt, whereas consumption during the month totaled 2,004.1kt.

Lead

The global lead market has recorded a deficit of 96,000 tonnes during January to April this year. It must be noted that the worldwide lead market had reported a deficit of 172 kt for the entire year 2016.

The global refined lead output during Jan-Apr ’17 increased by 13.3% over the previous year to 3,954 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-Apr ‘17 has surged higher by 514 kt. The Chinese apparent consumption in January to April 2017 totaled 1,715 kt, which is higher by 390 kt when matched with the corresponding four-month period in 2016. The Chinese apparent consumption represented almost 42% of the global total. The US apparent demand has increased by 133 kt during January to April when compared with the first four months of 2016.

The reported stocks of the metal at the end of April this year has increased by 2 kt when matched with the stock levels during the end of 2016.

The refined lead production during the month of April ’17 alone totaled 980.9 kt, whereas the consumption totaled 988.9 kt.