The World Bureau of Metal Statistics (WBMS) has recently released the metal balances report for all the major base metals. The report showed that the balances of primary aluminium, copper, lead and tin were in deficit, while zinc balance was in surplus during January-October 2022.
Aluminium shortfall
The supply and demand of aluminium recorded a shortfall of 981,000 tonnes (t), a deficit of 1.7 million tonnes (mnt) from last year. Demand for aluminium in January-October was 57.72 mnt, an increase of 18,000 t against the same period last year. National lockdowns may have distorted the trade balance.
Meanwhile, global production during the period increased by 378,000 t compared with 2021. Chinese output was at 3.33 mnt, an increase of 3% y-o-y with the country recording higher availability of imported stocks during the initial months of 2022.
Copper remains in deficit
The copper market recorded a deficit of 693,000 t in January-October, which resulted in a deficit of 336,000 t against the corresponding period last year (CPLY). Global demand in January-October was 21.27 mnt, which was 3.7% higher than the total recorded last year.
Chinese demand during the period was 11.88 mnt, 5.4% higher than the year-ago period. Output of semis manufactures in China rose by 8.6%. The US reported refined copper production at 851,400 t, which was 411,000 t higher than the same period of 2021.
Lead shortage
The lead market recorded a shortfall of 124,000 t in January-October, with a deficit of 90,100 t recorded in 2021. Total stocks at the end of October stood at 47,900 t lower than at the end of 2021.
Global refined lead production during the period under review from both the primary and secondary sources was 12.24 mnt which was around 4% higher y-o-y.
Chinese demand was estimated at 6.35 mnt which was 408,000 t higher the same period of 2021 and accounted for 52% share of global demand. The US reported demand decline of 4,000 t during the period compared to the same period of 2021.
Zinc market surplus
The zinc market a recorded surplus of 294,000 t in January-October which compares with a deficit of 115,600 t recorded in 2021. Total stocks during January-October 2022 decreased by 148,800 t from the end of 2021. Chinese demand was estimated at 55.85 mnt which was 50% of the global total.
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