Global Aluminum Market Deficit Contracted in Jan-Apr ‘18

SEATTLE (Scrap Monster): The Jan-Apr ’18 Metals Balances Report published by the World Bureau of Metal Statistics (WBMS) suggests that primary aluminum market ended in marginal deficit. The calculated market balance for the period stood at 91 kt. It must be noted that the market had reported a deficit of 1,022 kt during the entire year 2017.

The total reported stocks rose by 17 kt in April this year. This is inclusive of the 208 kt net deliveries into the Malaysian LME warehouses. The stocks had gone up by 112 kt during the month prior to that. The total stocks at the end of April this year surged higher to 2,757 kt, when matched with 2,346 kt at the end of the previous year. The stocks held by London, Shanghai, US and Tokyo exchanges surged higher by 440 kt from end-2017 to total 2,328 kt at the end of April 2018.

The overall global production recorded marginal decline by 0.3% during Jan-Apr ’18, as compared with the corresponding four-month period in 2017. The Chinese output totaled 10,891 kt, accounting for nearly 55% of the total global production. The production by the EU region has increased marginally by 1.3% over the previous year. Meantime, the NAFTA production has declined modestly by 5.1%. The primary aluminum production totaled 4,966.7 kt in April 2018, WBMS report said.

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The global demand for primary aluminum has declined by 2.4% when matched with Jan-Apr ’17 to total 19.77 million tonnes during the initial four-month period in 2018. The Chinese apparent demand dropped marginally by 1%. The EU demand too fell by 39 kt over the previous year. The April ’18 primary aluminum consumption totaled 4,954.5 kt.

According to WBMS, the exports of aluminum semi manufactures by China totaled 390 kt in April 2018. The cumulative exports totaled 1,527 kt, significantly higher by 34% when matched with the comparable period in 2017.