MCX COMMODITY MARKET SPECIAL UPDATES - 22 AUG 2016

BOJ:

Haruhiko Kuroda, governor of the Bank of Japan (BOJ) said there is a big chance that the BOJ will announce further monetary easing in September.

ALUMINIUM:

Alumina production in China hit this year’s high in July, but will fall back in August, SMM expects.

China Aluminum International Trading Co. (Chalco Trading) cut aluminum prices it offered in major markets today, it said on its WeChat.

SHFE 1610 aluminum will face pressure from longs to take profit at highs and move at RMB 12,470-12,650/mt today.

WBMS REPORT:

The latest Metals Balances Report released by the World Bureau of Metal Statistics (WBMS) indicates that Nickel market has ended in a small deficit during Jan-June ’16. Also, Tin and Zinc market too has recorded marginal deficit during this period.

NICKEL:

Global nickel market ended in deficit of 80,800 tonnes in January-June 2016 with apparent demand exceeding production. The calculated full year surplus had stood at 45.2 kt during the whole year 2015, according to WBMS.

The statistics indicate that that reported stockpiles maintained by LME were 61.8 kt lower at the end of June this year from the closing levels of 2015.

PRODUCTION:

World Nickel mine production was 956.7 kt in January-June 2016, lower by 100.4 kt when compared with the corresponding period during previous year. 

DEMAND:

Refined Nickel consumption during Jan-June ’16 surged higher by 134 kt when matched with the previous year. Nickel smelter consumption was 175.3 kt in June this year.

ZINC:

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

As per WBMS data, the global zinc market recorded deficit of 32 kt during the initial six months of the year from January to June. It should be noted that the worldwide zinc market had reported a surplus of 167 kt during the entire year 2015.

PRODUCTION:

Global refined zinc production witnessed decline of 4.8% during the initial six-month period of 2016. 

DEMAND:

The global demand for the metal witnessed sharp decline by 92 kt when matched with January to June in 2015. 

STOCK LEVELS :

LME zinc stocks rose by 62,000 tonnes during the month of June and accounted for 40% of the global stock of the metal. The LME stock levels at the end of June this year were 20 kt lower when matched with end-2015 levels.

The zinc slab production during June ’16 totaled 1,153.7 kt and the consumption totaled 1,172.7 kt.

Zinc, currently showing a year-to-date gain of almost 47 percent.

COPPER:

The London Metal Exchange three-month price is trading around $4,840 per tonne, translating to a year-to-date gain of just under five percent. And there are plenty of analysts expecting even lower copper prices over the coming months.

Peruvian production of mined copper jumped by a staggering 51.5 percent to 1.12 million tonnes in the first half of this year. National output was 741,000 tonnes in the year-earlier period, according to Peru's ministry of energy and mines. The core drivers of this surge are two new mines, Las Bambas and Constantia, and the expansion of another one.

 CAPITALSTARS