MI alloy stocks analysis: Weekly downtrend slows but still intact

Last week brought yet another extension of the long-running weekly downtrend with LME-registered stocks of alloy now showing a year-to-date decline of 20,660t. The downtrend slowed to a net weekly fall of “just” 200t, largely reflecting the Monday warranting of 300t at Bilbao in Spain—the first arrivals in the system since February. Draw activity also slowed over the second half of the week in reaction to a slide in cancelled tonnage to 840t on Tuesday. However, there were 440t of fresh cancellations over the following two days, giving “out” side activity a small fillip. That said, cancelled tonnage is low relative to the last few months and without further fresh cancellations, that should limit draw rates going forwards.