Primary Aluminum, Lead markets in deficits; Copper records surplus during Jan-Feb ‘17

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the first two months of the current year. The global primary Aluminum and Lead markets recorded marginal deficits during Jan-Feb ’17. On the other hand, copper market recorded minor surplus during the two-month 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 two months of 2017. As per the report, the market reported a deficit of 101,000 tons when matched with the deficit of 1.118 million tons reported for the entire year 2016.

The production of primary aluminum has surged higher by 971,000 tonnes during the two-month period from January to February this year. The total reported stock of metal declined further by 293,000 tonnes during the month of February alone. The stocks at the end of the initial two-month period stood at 2,556 kt, which is sufficient to meet 16 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 2,402 kt at the end of February, down by 78 kt when matched with end-2016 levels.

Global production rose considerably by 11.1% during the period from January to February in 2017. China, with estimated production of 5,485 kt, accounted for over 56% of the world production. Production in the EU-28 region rose marginally by 2.3% whereas the output by NAFTA region fell by 6.8% year-on-year. The primary aluminum production for the month of February alone was 4,839.1 kt, whereas the consumption totaled 4,904.8 kt.

The net exports of Chinese aluminum semi manufacturers totaled 527 kt during the first two months of the year, when compared with 537 kt during Jan-Feb ’15.

The WBMS report also states that the global aluminum demand increased by 1.018 million tons during January to February in 2017 to total 9.85 million tonnes, when compared with the corresponding period in 2016. The Chinese apparent demand was modestly higher by 22% when compared with 2016. However, EU-28 demand declined during January to February this year by 72 kt when compared with the year before.

Copper

The global copper market has recorded a surplus of 335 kt during January to February this year. It must be noted that the worldwide copper market had reported a surplus of 215 kt for the entire year 2016.

The global mine production during the period from January to February this year totaled 3.36 million tonnes. The mine production has grown by 6.4% when matched with the corresponding two-month period in 2016. Meantime, global refined copper output jumped higher by 1.9% over the previous year to 3.85 million tonnes. Chinese refined copper output reported significant increase of 88,000 tonnes during this period. Also, refined copper production was up sharply by 9,000 tonnes in India during the two-month period.

The global copper demand during Jan-Feb ’16 stood at 3.52 million tonnes, slightly lower when compared with 3.70 million tonnes during the same period in 2016. The Chinese apparent consumption dropped by 143,000 tonnes during this period to total 1.680 million tonnes. The Chinese demand accounted for just under 48% of the global demand. Also, EU-28 apparent consumption declined considerably by 11.7% from Jan-Feb ’16 levels to 498.3 kt.

According to the report, reported stocks of the metal stood higher by 72,000 tonnes during the initial two-month period of the year when compared with 2016 closing. The reported stocks increased modestly during the month of February.

The refined copper output during the month of February this year alone was 1,894.3 kt, whereas consumption during the month totaled 1,708.1 kt.

Lead

The global lead market has recorded a deficit of 81,000 tonnes during January to February this year. It must be noted that the worldwide lead market had reported a deficit of 154 kt for the entire year 2016.

The global refined lead output during Jan-Feb ’17 increased by 7.2% over the previous year to 1,841 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-Feb ‘17 has surged higher by 185 kt. The Chinese apparent consumption in January to February 2017 totaled 838.5 kt, which is higher by 214 kt when matched with the corresponding two-month period in 2016. The Chinese apparent consumption represented almost 44% of the global total. The apparent demand dropped by 14 kt in the US.

The reported stocks of the metal at the end of February this year has increased by 27.9 kt when matched with the stock levels during the end of 2016.

The refined lead production during the month of February ’17 alone totaled 921.8 kt, whereas the consumption totaled 951.9 kt.