Tuesday brought a mass raid on the LME-registered aluminium at Trieste in Italy with the whole 17,725t cancelled in one fell swoop. This metal—the original total was 26,250t—was warranted in Feb and Mar last year. It was untouched until October, since when bits and pieces have been slowly released.
The bulk cancellation has transformed a depleted-looking cancelled pipeline and ensures that draw rates will pick up once this metal starts to move. The overall ratio of cancelled tonnage in the system has perked up from 2.3% to 4.3%, which is still a low figure by comparison with most of the other LME metals.
It will be interesting to see if this was a one-off event or whether we see more bulk cancellations in the coming days, particularly given the fun and games still expected around the June options and prime prompt dates (Weds 6th and Weds 20th respectively).
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