MI aluminium stocks analysis: Asian arrivals resume

Low arrivals in the LME system last week allowed a mini downtrend to form, leading to the week's net 5,275t decline. However, inflow resumed at both Johor in Malaysia and at Singapore yesterday, nipping that downtrend in the bud. Draws were particularly low, which is a function of the slide in cancelled tonnage last week to Thursday's low point of 20,100t. Solid cancellation activity Friday and to some extent yesterday has partially refilled a depleted cancelled pipeline, suggesting we should see a pick-up in “out” side activity from Monday's anaemic levels going forward. NYMEX-warranted stocks fell by 155 tons to 18,923 tons (17,167 metric) Monday thanks to 132 tons of draws at Owensboro and 23 tons of draws at Woodburn. It was the first movement of warranted stocks in almost a month. Off warrant stocks continue to hover at low levels—currently at 34,319 pieces, down by 100,379 on the start of the year.