MI aluminium stocks analysis: LME creeps a little higher

The LME headline figure crept a little higher Tuesday, making a new 2007 high and a new 3-year high in doing so. Singapore currently holds the key to overall stocks direction and it is once again receiving sizeable amounts of metal on a daily basis. Draw rates are at best moderate and struggling to match what is coming in. Falling cancelled tonnage does nothing to persuade us that things are going to change any time soon. It was another day of modest cancellation rates yesterday and as a result the overall ratio of cancelled tonnage continues to drift at already low levels—2.8% now. A full analysis of July exchange stocks changes will be in tomorrow’s’ MI. The LME headline figure continues to wind its way lower—it is now back at levels last seen in August 2006. Tuesday brought draws from Trieste (80t of A380 ingot) and from Rotterdam (60t of DIN 226 ingot).