MI NASAAC stocks analysis: Picture transformed

Last week brought a transformation in the NASAAC stocks picture with inflow surging and cancelled tonnage slashed. Chicago had started receiving metal the week before last but the arrivals surged to 3,220t on Wednesday. The location received a total 3,860t last week and has received 4,380t since the start of the month. The flood brought the overall downtrend to a resounding halt, not least because draw activity slowed several gears to total just 80t. We would have argued that was a temporary phenomenon were it not that Wednesday also saw cancelled tonnage slashed via 740t of “reverse cancellations” at Detroit. What is still in the cancelled pipeline will support draws at a faster rate than the anaemic pace seen last week but the big over-hang of previous weeks has been sharply reduced. Cancelled tonnage ended the week at its lowest level since early March.