MI aluminium stocks analysis: LME edging higher again

LME-registered stocks of aluminium rose for the fourth successive day yesterday with the headline figure rising to a two-week high, in effect negating the mini-downtrend seen over the closing days of June. Part of the turnaround is down to very steady inflow at Singapore, which received another 2,500t Monday. That brings the cumulative total to 14,175t since this warranting activity began a week ago. Draw rates have moved down a gear over the last couple of reporting days, which is a function of low cancelled tonnage and subdued cancellation activity. The overall ratio of cancelled tonnage in the system is at a lowly 2.8%, which suggests little room for any sustained acceleration any time soon. Trieste and Singapore still account for the bulk of the cancelled tonnage, holding 6,950t and 6,525t respectively.