WBMS: Nickel, Tin and Zinc markets end in deficits during Jan-July ‘16

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 small deficit during Jan-July ’16. Also, Tin and Zinc markets too have recorded marginal deficits during this period.

Nickel

Global nickel market ended in deficit of 89,500 tonnes in January-July 2016 with apparent demand exceeding production. The calculated full year surplus had stood at 45.2 kt during the whole year 2015, according to WBMS.

The statistics indicate that that reported stockpiles maintained by LME were 68.4 kt lower at the end of July this year from the closing levels of 2015.

Production

World Nickel mine production was 1,176.3 kt in January-July 2016, lower by 54.8 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-July ’16 was 1,029 kt. Japan's smelter/refinery production during the initial seven-month period of the year witnessed a jump of 8.5 kt compared to 2015. The total smelter/refinery production of Nickel was 152.4 kt in July 2016.

 Demand

Refined Nickel consumption during Jan-July ’16 surged higher by 110 kt when matched with the previous year. Nickel smelter consumption was 164.1 kt in July this year.

The apparent demand of Nickel from Japan was marginally higher by 8.9 kt during January to July this year when matched with the previous year. The refined Nickel demand in Jan-July ’16 totaled 1,119 kt.

Tin

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

As per WBMS data, the global Tin market recorded slight deficit of 7.3 kt during the initial seven months of the year from January to July in 2016.

Global refined Tin production recorded slight increase of 14.70 kt during the seven-month period. The above production figure is without taking into account re-processed LME metal. The Asian production totaled 173.2 kt during Jan-July ’16, modestly higher when matched with the production of 160.4 kt during the corresponding period last year.

The global demand for the metal has increased by 4.1% when matched with January to July in 2015. The demand totaled 223.0 kt during this period. The Chinese apparent demand saw significant uptick of 10.1% over the previous year. The Japanese consumption totaled 15.1 kt, marginally lower by 0.8 kt when compared with the demand of 15.9 kt recorded during January to July in 2015.

The reported stock of the metal rose during the initial seven-month period of the year. The stock at the end of the first seven months in 2016 was marginally higher by 0.7 kt when compared with Dec ’15 closing levels. The reported stocks rose by 0.3 kt during the month of July.

During the month of July alone, the global refined Tin production totaled 29.7 kt, as against the demand of 30.3 kt.

Zinc

The worldwide zinc market has recorded deficit during January to July this year. This is after recording a surplus during the entire year 2015.

As per WBMS data, the global zinc market recorded deficit of 106 kt during the initial seven months of the year from January to July. It should be noted that the worldwide zinc market had reported a surplus of 167 kt during the entire year 2015.

Global refined zinc production witnessed decline of 4.7% during the initial seven-month period of 2016. The Chinese production of locally refined zinc dropped marginally by nearly 0.6% when compared with 2015.

The global demand for the metal witnessed sharp decline by 44 kt when matched with January to July in 2015. The Chinese apparent demand rose considerably by 5.0% over the previous year. The Japanese demand for the metal tumbled by 6% when matched with the levels recorded during Jan-July ’15. The demand during the seven -month period totaled 272 kt.

The reported stock of the metal has declined by 5,000 tonnes during the initial seven months of the year. Also, LME zinc stocks dropped by 12,000 tonnes during the month of July and accounted for 40% of the global stock of the metal. The LME stock levels at the end of July this year were 32 kt lower when matched with end-2015 levels.

The Chinese zinc metal imports, mostly special high grade zinc increased during Jan-July ’16 to 309 kt when compared with the imports of 232 kt during the same period last year. The imports of metal by China dropped to 17 kt during the month of July this year.

The zinc slab production during July ’16 totaled 1,140.0 kt and the consumption totaled 1,158.4 kt.