WBMS: Zinc, Lead, Tin Markets Record Marginal Deficits During H1 2017

SPOKANE (Scrap Monster):  The latest Metals Balances Report released by the World Bureau of Metal Statistics (WBMS) indicates that global Zinc market has ended in a marginal deficit during the initial six-month period of 2017. Also, Lead and Tin markets too have recorded deficit during the first half of the year.

Lead

The global lead market has recorded a deficit of 195,000 tonnes during January to June this year. It must be noted that the worldwide lead market had reported a deficit of 172 kt for the entire year 2016.

The global refined lead output during Jan-June ’17 increased by 11.5% over the previous year to 5,877 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-June ‘17 has surged higher by 706 kt. The Chinese apparent consumption in January to June 2017 totaled 2,579.0 kt, which is higher by 523 kt when matched with the corresponding six-month period in 2016. The Chinese apparent consumption represented nearly 42% of the global total. The apparent demand increased by 193 kt in the US during the six-month period.

The reported stocks of the metal at the end of June this year has increased marginally by 4 kt when matched with the stock levels during the end of 2016.

The refined lead production during the month of June ’17 alone totaled 990.7 kt, whereas the consumption totaled 1,008.9 kt.

Tin

The worldwide Tin market has recorded a marginal deficit during January to June this year. There were no DLA deliveries during the half-yearly period, the data said. As per WBMS data, the global Tin market recorded slight deficit of 7.6 kt.

Global refined Tin production edged higher by 13 kt during the six-month period. The Asian production increased by 14.8 kt during Jan-June ’17, when matched with the production during the corresponding period last year.

The global demand for the metal has increased marginally by 1.60% when matched with January to June in 2016. The demand totaled 193.4 kt during this period. The Chinese apparent demand saw significant uptick of 2.8% over the previous year. The Japanese consumption totaled 15.2 kt, significantly higher by 18% when compared with the demand recorded during January to June in 2016.

The reported stock of the metal jumped higher by 1.8 kt in June this year. The stock at the end of the first six months in 2017 was higher marginally by 1.8 kt when compared with Dec ’16 closing levels.

During the month of June alone, the global refined Tin production totaled 31.7 kt, as against the demand of 4.5 kt.

Zinc

As per WBMS data, the global zinc market recorded deficit of 370 kt during the initial six months of the current year. It should be noted that the worldwide zinc market had reported a deficit of 223 kt during the entire year 2016.

Global refined zinc production climbed higher by 1.60% during the initial six-month period of 2017. The Chinese production of locally refined zinc has declined by 1.2% when compared with 2016.

The global demand for the metal witnessed rise of 270 kt when matched with the first half-yearly period in 2016. The Chinese apparent demand totaled 3,240 kt and accounted for just less than 46% of the global total. The Japanese demand for the metal surged higher significantly by 15.2% when matched with the levels recorded during Jan-June ’16. The cumulative demand during the six-month period totaled 266 kt.

The reported stock of the metal has declined by 56 kt during the month of June this year. Also, LME zinc stocks dropped by 41,000 tonnes during the month of June, thereby accounting for 37% of the global stock of the metal. The LME stock levels at the end of June this year were 139.0 kt lower when matched with end-2016 levels.

The Chinese zinc metal imports, mostly special high grade zinc dropped by 112.0 kt during Jan-June ’17 to 180 kt when compared with the imports during the same period last year. The imports of metal by China totaled 42 kt during the month of June this year.

The zinc slab production in June ’17 totaled 1,149.4 kt and the consumption totaled 1,205.2 kt.