MI aluminium stocks analysis: Still balanced

LME stocks of primary aluminium are still directionless, broadly holding just beneath recent 2007 highs. Tuesday saw inflow and draws pretty much balance each other out. The draw rate picked up a little bit, which is probably the first reaction to the better rate of cancellation on Friday and Monday, but that wasn’t maintained Tuesday. The ratio of cancelled tonnage slipped to a less-than-breathtaking 3.1% and although cancelled tonnage will feed this sort of draw rate for some time, it doesn’t suggest much potential for any sustained acceleration either.