WBMS: Primary Aluminum Deficit Surged to 735 kt in May

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the initial five-month period of the current year. The global primary Aluminum markets recorded deficit during Jan-May ’17. The WBMS Metals Balances Report released yesterday indicates that global primary aluminum market deficit has further expanded during the month of May this year.

According to the report, world primary aluminum market recorded deficit of 735 kt during the initial five months of 2017. The deficit has further widened from 683 kt reported during the previous month. It must be noted that the global aluminum market had recorded a deficit of 1,097 kt during the entire year 2016.

The production of primary aluminum has surged higher by 1.371 million tonnes during the first five months of the current year. The total reported stock of metal declined further by 123,000 tonnes during the month of May alone. The stocks at the end of the initial five-month period stood at 2,347 kt, which is sufficient enough 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 1,920 kt at the end of May, significantly lower by 404 kt when matched with the 2016 closing levels.

Global production rose considerably by 5.9% during the period from January to May in 2017. China continued to be the leading aluminum producer. The aluminum production by China was estimated at 13,856 kt during this period. The country accounted for more than 56% of the global aluminum production during Jan-May ’17. The production by the EU region reported marginal decline by 1.5%, whereas the output from NAFTA region dropped by 3.8% from the levels recorded one year before. The primary aluminum output during the month of May alone totaled 5,036.9 kt. Also, the monthly consumption totaled 5,082.5 kt in May this year.

The net exports of Chinese aluminum semi manufacturers totaled 1,590 kt during the first five months of the year, rising sharply by nearly 4% over the previous year. The exports had totaled 1,531 kt during January to May last year.

The WBMS report also states that the global aluminum demand increased by 1.614 million tons during January to May in 2017 to total 25.34 million tonnes, when compared with the corresponding five-month period in 2016. The Chinese apparent demand was modestly higher by 9.4% when compared with 2016. Also, EU-28 demand stood higher by 69 kt during January to May this year when matched with the comparable period a year before.