WBMS: Primary Aluminum and Lead markets end in deficit; Copper records surplus

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the first eight months of the current year. The global primary Aluminum and Lead markets recorded marginal deficits during Jan-Aug ’16. On the other hand, copper market recorded marginal surplus during this period.

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 eight months of the year. As per the report, the market reported a deficit of 658,000 tons when matched with the deficit of 476,000 reported for the entire year 2015.

The production of primary aluminum has dropped by 573,000 tonnes during the eight-month period from January to August this year. The total reported stock of metal declined by 84,000 tonnes during the month of August this year. The stocks at the end of the initial eight-month period stood at 2,814 kt, which is sufficient to meet 18 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 2,348.2 kt at the end of August, down by 884 kt when matched with end-2015 levels.

Global production fell modestly by 1.49% during the period from January to August in 2016. China, with estimated production of 20,688 kt, accounted for over 55% of the world production. Production in the EU-28 region dropped marginally by 0.6% and the output by NAFTA region fell by 9.4% year-on-year. The primary aluminum production for the month of August alone was 4,867.5 kt, whereas the consumption totaled 4,882.0 kt.

The Chinese net exports of aluminum semis totaled 2,489 kt during the first eight months of the year, when compared with 2,558 kt during Jan-Aug ’15.

The WBMS report also states that the global aluminum demand reduced by 299,000 tonnes during January to August this year to total 38.45 million tonnes, when compared with the corresponding period last year. The Chinese apparent demand was modestly lower by 1.8% when compared with 2015. However, EU-28 demand increased during January to August this year by 209 kt when compared with the previous year.

Copper

The global copper market has recorded a surplus of 90,000 tonnes during January to August this year. It must be noted that the worldwide copper market had reported a surplus of 302,000 tonnes for the entire year 2015.

The global mine production during the period from January to August this year totaled 13.44 million tonnes. The mine production has grown by 6.7% when matched with the corresponding eight-month period in 2015. Meantime, global refined copper output jumped higher by 4.5% over the previous year to 15.68 million tonnes. Chinese refined copper output reported significant increase of 424,000 tonnes during this period. Also, refined copper production was up sharply by 30,000 tonnes in Chile during the eight-month period.

The global copper demand during Jan-Aug ’16 stood at 15.59 million tonnes, significantly higher when compared with 14.79 million tonnes during the same period in 2015. The Chinese apparent consumption increased by 553,000 tonnes during this period to total 7.663 million tonnes. The Chinese demand accounted for just over 49% of the global demand. Also, EU-28 apparent consumption increased sharply by 5.7% from Jan-Aug ’15 levels to 2.365 million tonnes.

According to the report, reported stocks of the metal stood higher by 99,000 tonnes during the initial eight-month period of the year when compared with 2015 closing. The stocks rose during the month of August this year.

The refined copper output during the month of August this year alone was 2,035.6 kt, whereas consumption during the month totaled 1,904.9 kt.

Lead

The global lead market has recorded a deficit of 58,000 tonnes during January to August this year. It must be noted that the worldwide lead market had reported a deficit of 17 kt for the entire year 2015.

The global refined lead output during Jan-Aug ’16 increased by 5.0% over the previous year to 7,145.7 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-Aug ‘16 has surged higher by 383 kt. The Chinese apparent consumption in January to August 2016 totaled 2,823.1 kt, which is higher by 250.0 kt when matched with the corresponding eight-month period in 2015. The Chinese apparent consumption represented over 39% of the global total. The apparent demand dropped by 14.9 kt in the US.

The reported stocks of the metal at the end of August this year has increased by 56 kt when matched with the stock levels during the end of 2015.

The refined lead production during the month of August ’16 alone totaled 903.8 kt, whereas the consumption totaled 891.1 kt.