MI aluminium stocks analysis: US cancellations

Tuesday brought a sharp acceleration in fresh cancellations. At a total 7,200t it was the highest single-day rate of cancellation since late May and has lifted the overall ratio of cancelled tonnage in the system to 3.5% from 2.8%. Most of the cancellation activity took place at US locations, Baltimore, Detroit and St Louis all seeing good-volume tonnage move to the cancelled category. Previously low cancelled tonnage has capped “out” side activity in the last few days, allowing the headline figure to edge steadily higher. Thanks to accelerated inflow at Singapore and at Johor and Pusan yesterday, it is now close to a one-month high.