MI aluminium stocks analysis: LME extends up trend

LME-registered stocks of primary aluminium rose for the sixth successive day thanks to continued accelerated inflow at Singapore. A total 17,950t has been warranted at this location since metal started arriving at the beginning of last week. Singapore has also been one of the more active locations on the “out” side in recent days (but not Wednesday itself) but registered stocks here have still risen by a net 13,600t over the same time frame. The overall draw rate remains subdued but is still being underpinned by daily movement at Trieste, where the big cancellations at the end of May are being worked off. A total 11,875t have now been drawn down at the Italian location, leaving 5,850t still in the cancelled category here. After Tuesday’s bumper crop of 7,200t, there were no fresh cancellations yesterday and it remains to be seen whether the one-off boost to cancelled tonnage leads to a sustained acceleration in “out” side activity. Most of them took place in the US, where locations have recently been characterised by steady but subdued daily movement.