WBMS:Primary Aluminum, Lead and Copper markets extend deficits

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the first seven months of the current year. The global primary Aluminum and Lead markets recorded marginal deficits during Jan-July ’16. Copper market too reported small deficit during this period.

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 seven months of the year. As per the report, the market reported a deficit of 513,000 tons when matched with the deficit of 331,000 reported for the entire year 2015.

The production of primary aluminum has dropped by 205,000 tonnes during the seven-month period from January to June this year. The total reported stock of metal declined by 175,000 tonnes during the month of July this year. The stocks at the end of the initial seven-month period stood at 2,900 kt, which is sufficient to meet 18 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 2,432.2 kt at the end of July, down by 800 kt when matched with end-2015 levels.

Global production fell modestly by 0.6% during the period from January to July in 2016. China, with estimated production of 17,976 kt, accounted for over 54% of the world production. Production in the EU-28 region dropped marginally by 0.6% and the output by NAFTA region fell by 9.1% year-on-year. The primary aluminum production for the month of July alone was 4,851.6 kt, whereas the consumption totaled 5,066.10 kt.

The Chinese net exports of aluminum semis totaled 2,155 kt during the first seven months of the year, when compared with 2,302 kt during Jan-July ’15.

The WBMS report also states that the global aluminum demand reduced by 51,000 tonnes during January to July this year to total 33.76 million tonnes, when compared with the corresponding period last year. The Chinese apparent demand was modestly lower by 1.9% when compared with 2015. However, EU-28 demand increased during January to July this year by 212 kt when compared with the previous year.

Copper

The global copper market has recorded a deficit of 151,000 tonnes during January to July this year. It must be noted that the worldwide copper market had reported a surplus of 344,000 tonnes for the entire year 2015.

The global mine production during the period from January to July this year totaled 11.70 million tonnes. The mine production has grown by 5.9% when matched with the corresponding seven-month period in 2015. Meantime, global refined copper output jumped higher by 3.6% over the previous year to 13.60 million tonnes. Chinese refined copper output reported significant increase of 337,000 tonnes during this period. Also, refined copper production was up sharply by 31,000 tonnes in Chile during the seven-month period.

The global copper demand during Jan-July ’16 stood at 13.72 million tonnes, significantly higher when compared with 12.94 million tonnes during the same period in 2015. The Chinese apparent consumption increased by 521,000 tonnes during this period to total 6.736 million tonnes. The Chinese demand accounted for just over 49% of the global demand. Also, EU-28 apparent consumption increased sharply by 4.5% from Jan-July ’15 levels to 2.082 million tonnes.

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

The refined copper output during the month of July this year alone was 1,972.8 kt, whereas consumption during the month totaled 1,891.5 kt.

Lead

The global lead market has recorded a deficit of 88,000 tonnes during January to July this year. It must be noted that the worldwide lead market had reported a deficit of 5.0 kt for the entire year 2015.

The global refined lead output during Jan-July ’16 increased by 5.0% over the previous year to 6,196.0 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-July ‘16 has surged higher by 358 kt. The Chinese apparent consumption in January to July 2016 totaled 2,459.7 kt, which is higher by 188.4 kt when matched with the corresponding seven-month period in 2015. The Chinese apparent consumption represented over 39% of the global total. The apparent demand dropped by 10.4 kt in the US.

The reported stocks of the metal at the end of July this year has increased by 62 kt when matched with the stock levels during the end of 2015.

The refined lead production during the month of July ’16 alone totaled 921.5 kt, whereas the consumption totaled 934.3 kt.