Primary Aluminum Market Deficit Expanded Further in July

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the first seven months of 2017. The global primary Aluminum market deficit widened further during the initial seven-month period from January to July this year.

According to the report, the calculated market balance of world primary aluminum market stood at deficit of 1,381 kt during the first seven months of the current year. The deficit has further widened from 1,074 kt reported at the end of June this year. It must be noted that the global aluminum market had recorded a deficit of 751 kt during the whole of 2016.

The production of primary aluminum has surged higher by 1.504 million tonnes during the first seven months of the current year. The total reported stock of metal declined further by 27,000 tonnes during the month of July alone. The stocks at the end of the seven-month period in 2017 stood at 2,273 kt, which is sufficient enough to meet global demand for 14 days. 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 1,840 kt at the end of July, significantly lower by 487 kt when matched with the 2016 closing levels.

Global production rose considerably by nearly 4.6% during the period from January to July in 2017. China led the world in aluminum production. The Chinese aluminum production was estimated at 19,531 kt during this period. The country accounted for more than 56% of the global aluminum production during Jan-July ’17. The production by the EU region reported marginal jump by 0.1%, whereas the output from NAFTA region dropped by 2.9% from the levels recorded during the corresponding period a year before. The primary aluminum output during the month of July alone totaled 4,845.9 kt. Also, the monthly consumption of primary aluminum totaled 5,154.6 kt in July this year.

The net exports of Chinese aluminum semi manufacturers totaled 2,312 kt during the first seven months of the year, rising sharply by more than 7% over the previous year. The exports had totaled 2,155 kt during January to July last year.

The WBMS report also states that the global aluminum demand increased by 2.222 million tons during January to July in 2017 to total 35.93 million tonnes, when compared with the corresponding seven-month period in 2016. The Chinese apparent demand was modestly higher by 8.8% when compared with 2016. Also, EU-28 demand stood higher by 162 kt during January to July this year when matched with the comparable period a year before.