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Tin April 21, 2017 10:30:09 AM

Nickel and Tin markets record small deficits, Zinc ends in surplus during Jan-Feb '17

Paul Ploumis
ScrapMonster Author
Global nickel market ended in deficit of 20,000 tonnes in the initial two-month period of 2017.
Nickel and Tin markets record small deficits, Zinc ends in surplus during Jan-Feb '17

SPOKANE (Scrap Monster):  The latest Metals Balances Report released by the World Bureau of Metal Statistics (WBMS) indicates that Nickel market has ended in a modest deficit during Jan-Feb ’17. Also, Tin market has recorded slight deficit during this period. Meantime, the WBMS data suggests that global zinc market recorded surplus.

Nickel

Global nickel market ended in deficit of 20,000 tonnes in January-February 2017 with apparent demand exceeding production. The calculated full year surplus had stood at 62 kt during the whole year 2016, according to WBMS.

The statistics indicate that that reported stockpiles maintained by LME were 5.7 kt lower at the end of February this year from the closing levels of 2016.

Production

World Nickel mine production was 311 kt in January-February 2017, slightly higher by 4.0 kt when compared with the corresponding period during previous year. The ban on exports by Indonesian administration has led to reduced mine output from the country. In addition, the local mine production from the country has continued to remain extremely weak ever since the beginning of 2014.

Refined Nickel production in Jan-February ’17 was 272.1 kt. The Chinese smelter/refinery production during the initial two-month period of the year witnessed decline of 6.60 kt compared to 2016. Meantime, demand edged lower by 25 kt in comparison with the previous year, mainly on account of reduced imports of Nickel metal from Russia. The total smelter/refinery production of Nickel was 134.7 kt in February 2017.

Demand

The world apparent demand surged higher by 18.6 kt when matched with the year before.Nickel smelter consumption was 147.10 kt in February this year.

The refined Nickel demand in Jan-February ’17 totaled 292.20 kt.

Tin

The worldwide Tin market has recorded a marginal deficit during January to February this year. There were no DLA deliveries during the two-month period, the data said.

As per WBMS data, the global Tin market recorded slight deficit of 0.20 kt during the initial two months of the year from January to February in 2017.

Global refined Tin production edged higher by 5.0 kt during the two-month period. The Asian production increased by 6.2 kt during Jan-Feb ’17, when matched with the production during the corresponding period last year.

The global demand for the metal has declined by 2.60% when matched with January to February in 2016. The demand totaled 60.30 kt during this period. The Chinese apparent demand saw significant uptick of 5.2% over the previous year. The Japanese consumption totaled 5.30 kt, significantly higher by 24% when compared with the demand recorded during January to February in 2016.

The reported stock of the metal declined during February this year. The stock at the end of the first two months in 2017 was higher by 2.0 kt when compared with Dec ’16 closing levels. The reported stocks decreased by nearly 1.20 kt during the month of February 2017.

During the month of February alone, the global refined Tin production totaled 30.6 kt, as against the demand of 31.10 kt.

Zinc

The worldwide zinc market has recorded surplus during January to February this year. It must be noted that the zinc market had ended in deficit in the whole of 2016.

As per WBMS data, the global zinc market recorded surplus of 62 kt during the initial two months of the current year from January to February. It should be noted that the worldwide zinc market had reported a deficit of 258 kt during the entire year 2016.

Global refined zinc production climbed higher by 6.0% during the initial two-month period of 2017. The Chinese production of locally refined zinc has increased by nearly 7.1% when compared with 2016.

The global demand for the metal witnessed rise of 143 kt when matched with January to February in 2016. The Chinese apparent demand totaled 967 kt and accounted for nearly 44% of the global total. The Japanese demand for the metal surged higher significantly by 16% when matched with the levels recorded during Jan-February ’15. The demand during the two-month period totaled 87 kt.

The reported stock of the metal jumped higher by 21 kt during the month of February this year. Also, LME zinc stocks dropped by 12,000 tonnes during the month of February and accounted for 37% of the global stock of the metal. The LME stock levels at the end of February this year were 44.0 kt lower when matched with end-2016 levels.

The Chinese zinc metal imports, mostly special high grade zinc dropped by 72 kt during Jan-February ’17 to 32 kt when compared with the imports during the same period last year. The imports of metal by China totaled 15 kt during the month of November last year, more or less flat when compared with the imports recorded during the month before.

The zinc slab production during February ’17 totaled 1,134.70 kt and the consumption totaled 1,083.90 kt.