MI aluminium stocks analysis: Better draw rate but cancellations lower

We're seeing a slight acceleration in daily draw rates from the LME system on the back of last week's relatively big (10,850t) cancellations. At the same time, Singapore went inactive Monday on the "in" side with only Johor in Malaysia featuring fresh warranting activity. It remains to be seen how long lower arrivals and better draws last, though. Cancellation activity was subdued again yesterday and the ratio of cancelled tonnage has just fallen through the 3.0% level to a low 2.9%. Without more cancellations in the next day or so, the uptick in "out" side activity is going to prove highly temporary.