WBMS: Primary Aluminum, Lead and Copper markets end in deficits

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the first five months of the current year. The global primary aluminum and Lead markets recorded marginal deficit during Jan-May ’16. Also, Copper market too reported small surplus during the initial five-month period of the year.

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 five months of the year. As per the report, the market reported a deficit of 408,000 tons when matched with the deficit of 331,000 reported for the entire year 2015.

The production of primary aluminum has dropped by 232,000 tonnes during the five-month period from January to May this year. The total reported stock of metal dropped by 171,000 tonnes during the month of May this year. The stocks at the end of the initial five-month period stood at 3,299 kt, which is sufficient to meet 21 days demand. It must be noted that the stock levels at the end of 2015 had stood at 3,787 kt. The combined stocks held in London, Shanghai, USA and Tokyo exchanges totaled 2,801 kt at the end of May, down by 432 kt when matched with end-2015 levels.

Global production fell modestly by 1.0% during the period from January to May in 2016. China, with estimated production of 12,616 kt, accounted for more than 54% of the world production. Production in the EU-28 region rose by 2.1% and the output by NAFTA region fell by 8.6% year-on-year. The primary aluminum production for the month of May alone was 4,874.1 kt, whereas the consumption totaled 4,851.3 kt.

The Chinese net exports of aluminum semis totaled 1,531 kt during the first five months of the year, when compared with 1,653 kt during Jan-May ’15.

The WBMS report also states that the global aluminum demand increased by 106,000 tonnes during January to May this year to total 23.82 million tonnes, when compared with the corresponding period last year. The Chinese apparent demand was marginally lower by 0.2% when compared with 2015. Also, EU-28 demand increased during January to May this year by 97 kt when compared with the previous year.

Copper

The global copper market has recorded a deficit of 48,000 tonnes during January to May this year. It must be noted that the worldwide copper market had reported a surplus of 373,000 tonnes for the entire year 2015.

The global mine production during the period from January to May this year totaled 8.14 million tonnes. The mine production has grown by 4.8% when matched with the corresponding five-month period in 2015. Meantime, global refined copper output jumped higher by 4.0% over the previous year to 9.66 million tonnes. Chinese refined copper output reported significant increase of 260,000 tonnes during this period. Also, refined copper production was up sharply by 36,000 tonnes in Chile during the five-month period.

The global copper demand during Jan-May ’16 stood at 9,706 kt, significantly higher when compared with 9,136 kt during the same period in 2015. The Chinese apparent consumption increased by 487,000 tonnes during this period to total 4.841 million tonnes. The Chinese demand accounted for nearly 50% of the global demand. Also, EU-28 apparent consumption increased sharply by 3.8% from Jan-May ’15 levels to 1.465 million tonnes.

According to the report, reported stocks of the metal stood lower by 37,000 tonnes during the initial five-month period of the year when compared with 2015 closing. The stocks fell during the month of May.

The refined copper output during the month of May this year alone was 1,873.90 kt, whereas consumption during the month totaled 1,928.80 kt.

Lead

The global lead market has recorded a surplus of 27,000 tonnes during January to May this year. It must be noted that the worldwide lead market had reported a deficit of 4.0 kt for the entire year 2015.

The global refined lead output during Jan-May ’16 increased marginally by 1.2% over the previous year to 4,222.5 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-May ‘16 has surged higher by 79kt. The Chinese apparent consumption in January to May 2016 totaled 1590 kt, which is marginally lower by 12 kt when matched with the corresponding five-month period in 2015. The Chinese apparent consumption represented nearly 37% of the global total. The apparent demand dropped by 19 kt in the US.

The reported stocks of the metal at the end of May this year has increased by 16.6 kt when matched with the stock levels during the end of 2015.

The refined lead production during the month of May ’16 alone totaled 850.3 kt, whereas the consumption totaled 843.6 kt.