A tranche of warranting activity at Singapore—6,025t of ingot and 750t of sow—brought an incipient downtrend in the LME headline figure to a resounding halt and wiped out the previous four days' modest falls.
As we highlighted in this column yesterday, this was always a possibility given the subdued rate of draw. It was low arrivals rather than strong "out" side activity that had allowed the LME stocks figure to trend lower in the first place. So no surprise that a pick-up in warranting activity should reverse the trend.
There is still no indication that the draw rate is going to rebound any time soon. Indeed, another day of low cancellation activity has left cancelled tonnage close to the 2007 low of 17,300t (seen on Jan 26), which suggests draws will if anything slow further in the next few days.
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