UPDATE:WBMS: Aluminum Market In 298,000-Ton Surplus In Jan-Mar

LONDON, May 20 -- The global aluminum market was in surplus by 298,000 metric tons in the first quarter of 2010, the World Bureau of Metal Statistics said Wednesday.

That compares with a 926,000-ton surplus in the first quarter of 2009, and with a surplus of 739,000 tons in the whole of 2009, the WBMS said.

Demand for primary aluminum in the three-month period totaled 9.76 million tons, 2.197 tons more than the equivalent total in 2009.

Overall, global production rose in the first quarter by 1.568 million tons after a decline of 2.9 million tons throughout 2009. WBMS estimates China's output at 4.049 million tons in the first quarter, accounting for 40% of total world production.

In March, primary aluminum production was 3.421 million tons and consumption was 3.323 million tons.

Global demand rose by 29% in the first quarter compared with the very depressed levels recorded a year ago, although WBMS didn't provide figures.

China remained a net importer of unwrought aluminum, with imports exceeding exports by 6,000 tons. During 2009, Chinese net imports totalled 1.43 million tons.

Total reported stocks rose slightly during January but dropped fractionally in February and March. At the end of March, total stocks were 6.52 million tons, up from 6.48 million tons at the end of last year and the equivalent of 67 days of demand.

Total stocks held in the four exchanges in London, Shanghai, U.S. and Tokyo were 5.002 million tons at the end of March, almost double the equivalent total recorded a year earlier.

Global producer stocks at the end of March were 1.52 million tons, 43,000 tons below end of 2009 levels.

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