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Nickel, Tin and Zinc markets record slight deficits in 2016

iconFeb 22, 2017 09:37
Global nickel market ended in deficit of 51,500 tonnes during 2016.

By Paul Ploumis

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 modest deficit during 2016. Also, Tin market has recorded slight deficit during the year. The WBMS data suggests that global zinc market too recorded marginal deficit.

Nickel

Global nickel market ended in deficit of 51,500 tonnes in January-December 2016 with apparent demand exceeding production. The calculated full year surplus had stood at 73.5 kt during the whole year 2015, according to WBMS.

The statistics indicate that that reported stockpiles maintained by LME were 69.3 kt lower at the end of 2016 from the closing levels of 2015.

Production

World Nickel mine production was 1,852.7 kt in January-December 2016, lower by 271.0 kt when compared with the corresponding period in 2015. The ban on exports by Indonesian administration has led to reduced mine output from the country. In addition, the local mine production from the country has continued to remain extremely weak ever since the beginning of 2014.

Refined Nickel production in Jan-December ’16 was 1,827.6 kt. The Chinese smelter/refinery production during the entire year witnessed decline of 25.0 kt compared to 2015. Meantime, demand surged higher by 45 kt in comparison with the previous year, mainly on account of rise in imports of Nickel Pig Iron from Indonesia and increased imports of the metal from Russia. The total smelter/refinery production of Nickel was 161.6 kt in December 2016.

 Demand

Refined Nickel consumption during Jan-December ’16 surged higher by 129.0 kt when matched with the previous year. Nickel smelter consumption was 143.4 kt in December last year.

The refined Nickel demand in Jan-December ’16 totaled 1,879.1 kt.

Tin

The worldwide Tin market has recorded a marginal deficit during January to December last year. There were no DLA deliveries during the year, the data said.

As per WBMS data, the global Tin market recorded slight deficit of 36.0 kt during the entire twelve month period of the year from January to December in 2016.

Global refined Tin production remained more or less flat during the previous year. The Asian production declined marginally by 2.2 kt during Jan-December ’16, when matched with the production during January to December in 2015.

The global demand for the metal has increased by 5.40% when matched with January to December in 2015. The demand totaled 388.40 kt during this period. The Chinese apparent demand saw significant uptick of 9.0% over the previous year. The Japanese consumption totaled 26.1 kt, lower by nearly 2.4% when compared with the demand recorded during January to December in 2015.

The reported stock of the metal declined during the twelve-month period of the year. The stock at the end of the year 2016 was lower by 3.6 kt when compared with Dec ’15 closing levels. The reported stocks increased marginally by nearly 1.2 kt during the month of December 2016.

During the month of December alone, the global refined Tin production totaled 30.6 kt, as against the demand of 33.6 kt.

Zinc

The worldwide zinc market has recorded deficit during January to December last year. It must be noted that the zinc market had ended in surplus in the whole of 2015.

As per WBMS data, the global zinc market recorded deficit of 177 kt during the full twelve-month period of 2016 from January to November. It should be noted that the worldwide zinc market had reported a surplus of 100 kt during the entire year 2015.

Global refined zinc production witnessed decline of 2.2% during 2016. The Chinese production of locally refined zinc increased marginally by nearly 1.9% when compared with 2015.

The global demand for the metal witnessed decline of 21 kt when matched with January to December in 2015. The Chinese apparent demand totaled 6,689 kt and accounted for over 48% of the global total. The Japanese demand for the metal rose slightly by 1.6% when matched with the levels recorded during Jan-December ’15. The demand during the entire year 2016 totaled 487 kt.

The reported stock of the metal has declined by 145,000 tonnes during the year. Also, LME zinc stocks dropped by 14,200 tonnes during the month of December and accounted for 45% of the global stock of the metal. The LME stock levels at the end of the year were 35.0 kt lower when matched with end-2015 levels.

The Chinese zinc metal imports, mostly special high grade zinc dropped by 119 kt during Jan-December ’16 to 424 kt when compared with the imports during the same period last year. The imports of metal by China totaled 23 kt during the month of December last year, more or less flat when compared with the imports recorded during the prior month.

The zinc slab production during December ’16 totaled 1,218.40 kt and the consumption totaled 1,174.10 kt.

Nickel
Tin
Zinc

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

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