MI alloy stocks analysis: Cancelled tonnage re-builds

LME-registered stocks of alloy fell by 620t last week with the headline figure now showing a year-to-date decline of 19,020t. Last week marked an acceleration of the long-running downtrend which had looked in danger of losing momentum until a flurry of cancellations on Friday, Jun 29. Cancellations accelerated further to 820t last week, leaving cancelled tonnage at its highest level in around a month. That should ensure a solid rate of draws in the coming days. Note that the cancellations included all 300t of A380 ingot at Barcelona. This metal has been sitting there untouched since the start of 2005.