Primary Aluminum Market Ended in Surplus: WBMS Metals Balances

SEATTLE (Scrap Monster): The world primary aluminum market recorded modest surplus during the initial nine-month period of 2020, says the latest Metals Balances Report published by the World Bureau of Metal Statistics (WBMS). The market witnessed a surplus of 1,603 kt during this period. The market had posted deficit of 480 kt in the whole of the previous year.

The total reported aluminum stocks as on end-September this year rose to close at levels 54 kt above the December 2019 level. The stocks rose early in the year, but declined during the last quarter. The total LME stocks stood at 1,451 kt as compared with 1,473 kt at the end of the previous year. The Shanghai stocks rose during the initial months of the year, but fell by 300 kt in the second quarter to close at 230 kt at the end of September.

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From January to September in 2020, the overall aluminum production surged higher by 3.9% compared with the corresponding nine months of 2019. The Chinese production totalled 27.428 million t, accounting for nearly 55% of the global output. The production by the EU-28 edged lower by 1% year-on-year, whereas the NAFTA region output increased by 4.1% over the previous year.

The primary aluminum output during the month totalled 5,596.7 kt, whereas the monthly consumption totalled 5,465.9 kt during the month.

According to WBMS, the global aluminum demand increased marginally by 3.9% during Jan-Sep ’20, in the midst of national lockdowns on account of pandemic spread. The Chinese apparent demand was modestly higher by 9.9% year-on-year. Also, EU-28 demand stood lower by 1,087 kt from the comparable period in 2019.