MI aluminium stocks analysis: Cancelled tonnage drops further

Draws of primary aluminium from the LME system are running at a relatively healthy clip at the moment, while inflow has dropped a gear this week. That’s down to the fact that the spate of arrivals at Singapore seems to have run its course for now with fresh warranting activity focused exclusively on Johor in Malaysia. However, another day of ultra low cancellations—the week-to-date total is a meagre 975t—has left cancelled tonnage at its lowest level since late May. The system is still working off residual cancelled tonnage at Trieste as well as last week’s better cancellation rate (10,850t) but fast-falling cancelled tonnage suggests we’re going to be in for a period of very slow “out” side activity once this current tranche is out of the way.