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Debt burden stunts the growth of a new... |
Global metals demand healthy despite Asian flu
WORLD MARKETS
THERE were strong increases in demand for aluminium, copper and nickel last year, despite the developing economic problems in Asia. But this was not enough to prevent substantial supply surpluses building up in these important global metal markets, according to the UK-based World Bureau of Metal Statistics. World demand for tin and zinc fell last year compared with 1996, the bureau said in its latest quarterly market review, while lead was the only London exchange-traded commodity where consumption outpaced production. Global aluminium consumption last year increased by 2.76% to 21.4-million tons, the bureau said. Nevertheless, production increases in most of the leading supplying countries, including Russia, culminated in a 3.9% jump in output to 21.8-million tons.
Copper was already in surplus by 240 000 tons in 1996, and the surplus grew to 490 000 tons last year. A 3.1% rise in copper consumption to 12.8-million tons was not enough to keep up with a 5.1% jump in output to 13 365-million tons. Most of the production increase came from Chile, which is rapidly catching up with the US, the world's leading producer of refined copper. Chile's copper output jumped 21% to 2.116-million tons, compared with the 2.435-million tons produced in the US last year. Among the London-traded metals, nickel saw the biggest rise in global demand last year, by 5% to 974 000 tons. This was in spite of a fall in consumption in two big markets - US demand fell 6.3% to 134 100 tons while Japan's fell by 5.2% to 177 400 tons. Nevertheless, total nickel consumption was up 9.9% to 347 800 tons and in Europe demand rose 13.8% to 360 900 tons. Nickel output also rose strongly by 4.75% to 998 100 tons. This created a surplus of 23 600 tons, down from a surplus of 25 400 tons in 1996. The global lead market moved from a 57 000-ton surplus in 1996 to a deficit of 125 000 tons last year. Consumption rose by 1.6% to 5.814-million tons. Output fell by 1,56% to 5.689-million tons. Tin demand fell by 3% last year to 226 300 tons. However, output was confined to a rise of just under 1%, to 226 600 tons, leaving the market virtually in balance. In 1996 there was an 8 800-ton deficit. - Financial Times.
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That drove the aluminium market to a surplus last year of 400 000 tons, after a deficit of 505 000 tons in 1996. The biggest percentage increases in aluminium output were in the United Arab Emirates (up 47% to 380 000 tons) and Australia (up 9.1% to 1 495-million tons). China remained the world's biggest producer, raising its output by 3.7% to 5.6-million tons.