Primary Aluminum, Lead markets end in deficit during 2016; Copper records surplus

SPOKANE (Scrap Monster): The World Bureau of Metal Statistics (WBMS) has published the Metals Balances Report for the whole year 2016. The global primary Aluminum and Lead markets recorded marginal deficits during the year. On the other hand, copper market recorded minor 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 deficit during the entire 12-month period in 2016. As per the report, the market reported a deficit of 985,000 tons when matched with the deficit of 659,000 reported for the entire year 2015.

The production of primary aluminum has increased by 421,000 tonnes during the entire year 2016. The total reported stock of metal increased by 115,000 tonnes during the month of December 2016. The stocks at the end of the year stood at 2,761kt, which is sufficient to meet 17 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 2,324.2kt at the end of December 2016, down by 908 kt when matched with end-2015 levels.

Global production rose slightly by 0.7% during the period from January to December in 2016. China, with estimated production of 31,870 kt, accounted for over 55% of the world production. Production in the EU-28 region rose marginally by 0.4%, whereas the output by NAFTA region fell by 9.8% year-on-year. The primary aluminum production for the month of December alone was 5,096.8 kt, whereas the consumption totaled 5,251.9kt.

The net exports of Chinese aluminum semi manufacturers totaled 3,688kt during the full year 2016, when compared with 3,777 kt during Jan-Dec ’15.

The WBMS report also states that the global aluminum demand increased by 748,000 tonnes during January to December last year to total 58.74 million tonnes, when compared with 2015. The Chinese apparent demand was modestly higher by 1.8% when compared with 2015. Also, EU-28 demand increased during the year by 469 kt when compared with the year before.

Copper

The global copper market has recorded a surplus of 58,000 tonnes during January to December last year. It must be noted that the worldwide copper market had reported a surplus of 141,000 tonnes during the entire year 2015.

The global mine production during the period from January to December 2016 totaled 20.66 million tonnes. The mine production has grown by 6.9% when matched with 2015. Meantime, global refined copper output jumped higher by 2.1% over the previous year to 23.46 million tonnes. Chinese refined copper output reported significant increase of 476,000 tonnes during the year. Also, refined copper production was up sharply by 14,000 tonnes in Spain during the year 2016.

The global copper demand during Jan-Dec ’16 stood at 23.40 million tonnes, significantly higher when compared with 22.83 million tonnes during 2015. The Chinese apparent consumption increased by 289,000 tonnes during this period to total 11.642 million tonnes. The Chinese demand accounted for just fewer than 50% of the global demand. Also, EU-28 apparent consumption increased modestly by 3.2% from Jan-Dec ’15 levels to 3.443 million tonnes.

According to the report, reported stocks of the metal stood higher by 59,100 tonnes during the entire year 2016 when compared with 2015 closing. The stocks rose marginally during the month of December last year.

The refined copper output during the month of December last year alone was 1,994.5kt, whereas consumption during the month totaled 1,970.8 kt.

Lead

The global lead market has recorded a deficit of 167,000 tonnes during January to December last year. It must be noted that the worldwide lead market had reported a deficit of 14 kt for the entire year 2015.

The global refined lead output during Jan-Dec ’16 increased by 9.1% over the previous year to 11,123.1 kt. This is inclusive of production from primary and secondary sources.

The global lead demand during Jan-Dec ‘16 has surged higher by 1.078 million tons. The Chinese apparent consumption in January to December 2016 totaled 4,659.5 kt, which is higher by 856.0 kt when matched with the year before. The Chinese apparent consumption represented over 41% of the global total. The apparent demand dropped by 26 kt in the US.

The reported stocks of the metal at the end of 2016 have increased by 12.9 kt when matched with the stock levels during the end of 2015.

The refined lead production during the month of December ’16 alone totaled 1,157.7 kt, whereas the consumption totaled 1,205.7 kt.