Primary Aluminum Market During H1 2018 Ended in Notable Deficit

SEATTLE (Scrap Monster): The calculated market balance for primary aluminum was a deficit of 334,000 tonnes from January to June this year. This follows a deficit of 1025 kt recorded during the whole of the prior year. The primary aluminum production totaled 5,049.7 kt in June this year, whereas the consumption exceeded marginally to total 5,057.1 kt, says the Jan to June 2018 Metal Balances Report published by the World Bureau of Metal Statistics (WBMS).

The total reported stocks dropped by 110 kt in June this year. The LME stocks have fallen by 99 kt in June, mainly on account of declines reported by Malaysia, Singapore and the Netherlands. The total stocks as of end-June this year stood at 2,527 kt, significantly higher than the 2,346 kt at the end of the previous year. The stocks held by London, Shanghai, US and Tokyo exchanges surged higher by 110 kt from end-2017 to total 2,053 kt at the end of June 2018.

The global production declined by 413 kt in H1 2018, which equates to 1.4%, when compared with the first half of 2017. China continued to be the leading producer, with an output of 16,468 kt, accounting for more than 55% of the total world production. The EU-28 region reported 0.8% jump in aluminum production when compared with the previous year. On the contrary, NAFTA output has dropped notably by 5.2%.

ALSO READ: Century Aluminum Declares Ceremonial Restart of Hawesville Smelter

The global demand for primary aluminum has dropped by 881 kt during Jan-June ’18, as compared with the first six months of 2017, to total 29.94 million tonnes. The Chinese apparent demand dropped marginally by 2.4% over the year. The EU demand edged higher marginally by 38 kt.

According to WBMS, the exports of aluminum semi manufactures by China totaled 415 kt in June 2018. The cumulative H1 2018 exports totaled 2,427 kt, significantly higher by 14% when matched with the comparable period in 2017.