WBMS: Primary Aluminum, Lead and Copper markets record deficits during first half of 2016

By Paul Ploumis (ScrapMonster Author)

August 18, 2016 05:10:08 AM

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the first six months of the current year. The global primary Aluminum and Lead markets recorded marginal deficit during Jan-June ’16. Also, Copper market too reported small deficit during the initial half of the year.

Aluminum                                                                 

The latest report published by the World Bureau of Metal Statistics (WBMS) indicates that global primary aluminum market has recorded a marginal deficit during the initial six months of the year. As per the report, the market reported a deficit of 479,000 tons when matched with the deficit of 331,000 reported for the entire year 2015.

The production of primary aluminum has dropped by 347,000 tonnes during the six-month period from January to June this year. The total reported stock of metal declined by 225,000 tonnes during the month of June this year. The stocks at the end of the initial six-month period stood at 3,075 kt, which is sufficient to meet 19 days demand. It must be noted that the stock levels at the end of 2015 had stood at 3,787 kt. The combined stocks held in London, Shanghai, USA and Tokyo exchanges totaled 2,597 kt at the end of June, down by 635 kt when matched with end-2015 levels.

Global production fell modestly by 1.2% during the period from January to June in 2016. China, with estimated production of 15,320 kt, accounted for nearly 54% of the world production. Production in the EU-28 region dropped marginally by 0.5% and the output by NAFTA region fell by 9% year-on-year. The primary aluminum production for the month of June alone was 4,840.3 kt, whereas the consumption totaled 5,041.5 kt.

The Chinese net exports of aluminum semis totaled 1,841 kt during the first six months of the year, when compared with 2,029 kt during Jan-June ’15.

The WBMS report also states that the global aluminum demand reduced by 113,000 tonnes during January to June this year to total 28.73 million tonnes, when compared with the corresponding period last year. The Chinese apparent demand was modestly lower by 1.8% when compared with 2015. Also, EU-28 demand increased during January to June this year by 147 kt when compared with the previous year.

Copper

The global copper market has recorded a deficit of 197,000 tonnes during January to June this year. It must be noted that the worldwide copper market had reported a surplus of 372,000 tonnes for the entire year 2015.

The global mine production during the period from January to June this year totaled 10.0 million tonnes. The mine production has grown by 5.9% when matched with the corresponding six-month period in 2015. Meantime, global refined copper output jumped higher by 3.4% over the previous year to 11.60 million tonnes. Chinese refined copper output reported significant increase of 250,000 tonnes during this period. Also, refined copper production was up sharply by 28,000 tonnes in Chile during the six-month period.

The global copper demand during Jan-May ’16 stood at 11.8 million tonnes, significantly higher when compared with 11.1 million tonnes during the same period in 2015. The Chinese apparent consumption increased by 522,000 tonnes during this period to total 5.852 million tonnes. The Chinese demand accounted for just fewer than 50% of the global demand. Also, EU-28 apparent consumption increased sharply by 4.4% from Jan-June ’15 levels to 1.773 million tonnes.

According to the report, reported stocks of the metal stood lower by 86,000 tonnes during the initial six-month period of the year when compared with 2015 closing. The stocks fell during the month of June.

The refined copper output during the month of June this year alone was 1,951.9 kt, whereas consumption during the month totaled 2,040.7 kt.

Lead

The global lead market has recorded a deficit of 46,000 tonnes during January to June this year. It must be noted that the worldwide lead market had reported a deficit of 4.0 kt for the entire year 2015.

The global refined lead output during Jan-June ’16 increased marginally by 1.9% over the previous year to 5,145.7 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-June ‘16 has surged higher by 136kt. The Chinese apparent consumption in January to June 2016 totaled 1,959 kt, which is marginally lower by 9 kt when matched with the corresponding six-month period in 2015. The Chinese apparent consumption represented nearly 37% of the global total. The apparent demand dropped by 15 kt in the US.

The reported stocks of the metal at the end of June this year has increased by 21.0 kt when matched with the stock levels during the end of 2015.

The refined lead production during the month of June ’16 alone totaled 894.6 kt, whereas the consumption totaled 919.7 kt.