MI NASAAC stocks analysis: Downtrend slows but has further to run

As with LME stocks of alloy, those of NASAAC have also been trending lower for some time. The pace of that downtrend was slowed to 900t last week by a 520t burst of warranting activity at Chicago over Monday-Wednesday. The draw rate dropped a couple of gears too over the second half of the week but—unlike alloy—there is still a fair amount of cancellation activity, suggesting the overall trend has further to run in the coming days. Fresh cancellations totalled 600t last week—the best rate for three weeks—and there remains a sizeable overhang of cancelled tonnage to be worked off.