MI alloy stocks analysis: Down again

LME-registered stocks of alloy fell for the eighteenth successive week with the latest 2,060t decline bringing the year-to-date net decline to 15,260t.

There were 1,300t of fresh cancellations last week, ensuring that solid draw rates are going to be with us for a while yet. But cancelled tonnage in the system is slowly declining—it ended Friday at two-month lows—suggesting that draws will do well to maintain Friday’s accelerated pace for too long.