MI alloy stocks analysis: Downtrend accelerates

The long-running downtrend in LME-registered stocks of alloy accelerated last week to a 1,440t decline. The headline figure is now down by 20,460t on the start of the year. However, there were no fresh cancellations at all last week and our impression is that we’re seeing the last burst of “out” side activity prior to the summer slowdown. Cancelled tonnage is at its lowest level since late March and it’s quite clear that what is left will support current draw rates for only a few more days.