World Nickel, Zinc and Tin markets moved to marginal deficits: WBMS

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 marginal deficit during Jan-Apr ’17. Also, Zinc and Tin markets too have recorded deficit during the initial four-month period of the year.

Nickel

Global nickel market ended in marginal surplus of 35,300 tonnes during the initial four-month period of the year from January to April with apparent production exceeding demand. The calculated full year deficit had stood at 62 kt during the whole year 2016, according to WBMS.

The statistics indicate that that reported stockpiles maintained by LME were 7.1 kt higher at the end of the first four months of this year when matched with the closing levels of 2016.

Production

World Nickel mine production was 574 kt in January-April 2017, considerably lower by 60.0 kt when compared with the corresponding period during previous year.

Refined Nickel production in Jan-Apr ’17 was 531.6 kt. The Chinese smelter/refinery production during the initial four-month period of the year witnessed decline of 26.0 kt compared to 2016. Meantime, demand edged lower by 107 kt in comparison with the previous year, mainly on account of reduced imports of Nickel metal from Russia. The total smelter/refinery production of Nickel was 138.1 kt in April 2017.

Demand

The world apparent demand during the first four months in 2017 was down by 37.0 kt when matched with the year before. Nickel smelter consumption was 145.9 kt in April this year.

The refined Nickel demand during Jan-Apr ’17 totaled 566.8 kt.

Tin

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

As per WBMS data, the global Tin market recorded slight deficit of 3.0 kt during the initial four months of the year from January to April in 2017.

Global refined Tin production edged higher by 9.21 kt during the four-month period. The Asian production increased by 10.5 kt during Jan-Apr ’17, when matched with the production during the corresponding period last year.

The global demand for the metal has declined marginally by 0.60% when matched with January to April in 2016. The demand totaled 126.2 kt during this period. The Chinese apparent demand saw significant uptick of 4.1% over the previous year. The Japanese consumption totaled 10.1 kt, significantly higher by 18% when compared with the demand recorded during January to April in 2016.

The reported stock of the metal declined during April this year. The stock at the end of the first four months in 2017 was lower by 0.9 kt when compared with Dec ’16 closing levels. The reported stocks decreased by nearly 0.5 kt during the month of April 2017.

During the month of April alone, the global refined Tin production totaled 30.8 kt, as against the demand of 32.3 kt.

Zinc

The worldwide zinc market has recorded deficit during January to April this year. It must be noted that the zinc market had ended in deficit in the whole of 2016.

As per WBMS data, the global zinc market recorded deficit of 106 kt during the initial four months of the current year from January to April. It should be noted that the worldwide zinc market had reported a deficit of 236 kt during the entire year 2016.

Global refined zinc production climbed higher by 4.40% during the initial three-month period of 2017. The Chinese production of locally refined zinc too has increased by nearly 4.40% when compared with 2016.

The global demand for the metal witnessed rise of 206 kt when matched with January to April in 2016. The Chinese apparent demand totaled 2,095 kt and accounted for nearly 45.7% of the global total. The Japanese demand for the metal surged higher significantly by 19% when matched with the levels recorded during Jan-April ’16. The demand during the four-month period totaled 184.0 kt.

The reported stock of the metal has declined by 93 kt during the month of April this year. Also, LME zinc stocks dropped by 23,000 tonnes during the month of April, thereby accounting for 38.5% of the global stock of the metal. The LME stock levels at the end of April this year were 80.0 kt lower when matched with end-2016 levels.

The Chinese zinc metal imports, mostly special high grade zinc dropped by 115.0 kt during Jan-April ’17 to 106 kt when compared with the imports during the same period last year. The imports of metal by China totaled 48 kt during the month of April this year.

The zinc slab production during April ’17 totaled 1,111.5 kt and the consumption totaled 1,237.0 kt.