MI aluminium stocks analysis: LME edges up to fresh 2007 high

The LME headline figure Monday edged up to a fresh 2007 high and its highest level since August 2004. Direction is currently coming from the resumption of warranting activity at Singapore. This location went quiet in terms of arrivals in the week before last—coinciding with a 5,275t net decline in the headline stocks figure—but has sprung back into life since the start of last week—coinciding with a net 6,150t rise in the headline figure. Draws remain a bit humdrum and falling cancelled tonnage—the ratio is now at a low 2.8%--suggests no change in "out" side activity patterns in the next few days. In other words, more daily inflow at Singapore at yesterday's pace is very likely to keep pushing the headline figure higher.