MI alloy stocks analysis: Downtrend continues, more cancellations

LME-registered stocks of alloy fell by another 1,680t last week, bringing the cumulative year-to-date decline to 12,100t. The rate of draw slowed slightly over the course of last week but a gradual erosion of cancelled tonnage was also mitigated by a pick-up in fresh cancellation activity to 540t from the previous weeks' 340t.

Cancelled tonnage is now well down from its late-April levels above 7,000t but there is still enough sitting in this category to feed robust draws for several more days yet.