WBMS: Aluminum In 314,000-Ton Surplus In January-June

LONDON, Aug 18, 2010 (Dow Jones Commodities News via Comtex) --The global aluminum market was in surplus by 314,000 metric tons in the first six months of 2010, the World Bureau of Metal Statistics said Wednesday.

That compares with a 755,000-ton surplus in the same period of 2009, and with a surplus of 781,000 tons in the whole of 2009, the WBMS said.

Demand for primary aluminum in the six-month period totaled 19.97 million tons, some 3.490 million tons more than the equivalent total in 2009.

Overall, global production in the first six months rose 18% on the year-earlier period. WBMS estimates China's output at 8.320 million tons in the first six months, accounting for almost 41% of total world production.

In June, primary aluminum production was 3.426 million tons and consumption was 3.369 million tons.

China is now a net exporter of unwrought aluminum, with exports exceeding imports by 125,000 tons. During 2009, Chinese net imports totaled 1.43 million tons.

At the end of June, total reported stocks were 6.479 million tons, equivalent to 66 days of demand and down from 6.486 million tons at the end of 2009.

Total stocks held in the four exchanges in London, Shanghai, the U.S. and Tokyo at the end of June were 4.92 million tons, almost double the amount at the end of 2008.

Global producer stocks at the end of June totaled 1.192 million tons, 13,000 tons below end-2009 levels.

No allowance is made in the consumption calculation for unreported stock changes, especially those held in China.