MI aluminium stocks analysis: Strong draws, feeble cancellations

Subdued inflow and a strong draw rate combined for LME stocks to register their biggest single-day decline of the year.

The draw rate was inflated by strong movement at Gwangyang, which has been quiet for around a week. However, it also depleted the cancelled pipeline at this South Korean location, which now holds 2,675t of cancelled tonnage.

That's true of the system as a whole, with just 1,175t of fresh cancellations Monday. The ratio of cancelled tonnage has slid back to a lowly 3.7% from Friday's 4.2% and although there's potential for another couple of days of robust departure rates—particularly at Rotterdam, which holds the largest concentration of cancelled tonnage at 10,275t—draws are likely to slow down as we go forwards.