MI aluminium stocks analysis: Higher as cancelled tonnage sinks

LME-registered stocks of primary aluminium rose by a net 2,925t last week, largely offsetting the previous week's net 3,825t decline. The driver was Singapore, which received a hefty 11,675t over the course of the week, negating 3,500t of draws and generating a net increase in local stocks of 8,175t. The only other location to see daily "out" side activity was Trieste, where stocks fell by 2,725t. These draws are still coming from the mass cancellations back in early June. Of the total 17,725t cancelled, 10,525t have been drawn down, leaving 7,200t still awaiting departure. Draws at other locations in the system were highly modest last week, reflecting the concentration of cancelled tonnage on Singapore and Trieste. Fresh cancellations last week dropped to a humble 4,100t with the ratio of cancelled tonnage sliding to 2.8%. That's going to keep a lid on draw rates in the next few days.