WBMS: Nickel, Tin markets end in minor deficit; Zinc records tiny surplus

By Paul Ploumis (ScrapMonster Author)

June 17, 2016 03:29:01 AM

SPOKANE (Scrap Monster):The latest Metals Balances Report for the first four months of the current year released by the World Bureau of Metal Statistics (WBMS) indicates that Nickel market has ended in a small deficit during Jan-Apr ’16. Also, Tin market too has recorded marginal deficit during this period. On the other hand, global Zinc market recorded minor surplus during January to April 2016.

Nickel

Global nickel market ended in small deficit of 8,800 tonnes in January-April 2016 with apparent demand exceeding production. The calculated full year surplus had stood at 45.0 kt during the whole year 2015, according to WBMS.

The statistics indicate that that reported stockpiles maintained by LME were 23.8 kt lower at the end of April this year from the closing levels of 2015.

Production

World Nickel mine production was 690.10 kt in January-April 2016, lower by 19.3 kt when compared with the corresponding period during previous year. 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 been weak since the beginning of 2014.

Refined Nickel production in Jan-Apr ’16 was 568 kt. The total smelter/refinery production of Nickel was 145.5 kt in April 2016. Japan's smelter/refinery production during the initial four-month period of the year witnessed a jump of 6.6 kt compared to 2015.

Demand

Refined Nickel consumption during Jan-Apr ’16 surged higher by 86 kt when matched with the previous year. Nickel smelter consumption was 157.0 kt in April this year.

The apparent demand of Nickel from Japan was marginally higher by 3.3 kt during January to April this year when matched with the previous year. The refined Nickel demand in Jan-Apr ’16 totaled 577 kt.

Tin

The worldwide Tin market has recorded a marginal deficit during January to April this year. There were no DLA deliveries during the three-month period, the data said.

As per WBMS data, the global Tin market recorded slight deficit of 3.8 kt during the initial four months of the year from January to April in 2016.

Global refined Tin production recorded slight increase of 8.30 kt during the four-month period. The above production figure is without taking into account re-processed LME metal. The Asian production totaled 101.2 kt during Jan-Apr ’16, modestly higher when matched with the production of 91.2 kt during the corresponding period last year.

The global demand for the metal has increased by 4.3% when matched with January to April in 2015. The demand totaled 123 kt during this period. The Chinese apparent demand saw significant uptick of 12% over the previous year. The Japanese consumption totaled 8.6 kt, marginally lower by 1.0 kt when compared with the demand of 9.6 kt recorded during January to April in 2015.

The reported stock of the metal declined during the initial four-month period of the year. The stock at the end of the first four months in 2016 was lower by 6.5 kt when compared with Dec ’15 closing levels. The reported stocks rose by 1% during the month of April alone.

During the month of April alone, the global refined Tin production totaled 29.5 kt, as against the demand of 29.9 kt.

Zinc

The worldwide zinc market has recorded a marginal surplus during January to April this year. This is after recording a surplus during the entire year 2015.

As per WBMS data, the global zinc market recorded small surplus of 6.7 kt during the initial four months of the year from January to April. It should be noted that the worldwide zinc market had reported a surplus of 106 kt during the entire year 2015.

Global refined zinc production witnessed decline of 4.5% during the initial four-month period of 2016. The Chinese production of locally refined zinc dropped marginally by nearly 0.7% when compared with 2015.

The global demand for the metal has increased by 16 kt when matched with January to April in 2015. The Chinese apparent demand rose sharply by 5.6% over the previous year. The Japanese demand for the metal tumbled by 25% when matched with the levels recorded during Jan-Apr ’15. The demand during the four-month period totaled 132.1 kt.

The reported stock of the metal has increased by 6,000 tonnes during the initial four months of the year. The LME zinc stocks tumbled by 33,000 tonnes during the month of April and accounted for 37% of the global stock of the metal. The LME stock levels at the end of April this year were 61 kt lower when matched with end-2015 levels.

The Chinese zinc metal imports increased during Jan-Apr ’16 to 220 kt when compared with the imports of 133 kt during the same period last year. The imports of special high grade zinc metal by China totaled 39 kt during the month of April this year.

The zinc slab production during Apr ’16 totaled 1,112.7 kt and the consumption totaled 1,172.3 kt.