MI aluminium stocks analysis: Mini downtrend halted

The five-day mini-downtrend in LME warehouse stocks of primary aluminium was halted Wednesday by a re-acceleration of inflow at Singapore and the addition of Pusan in South Korea to the arrivals list. Draws were again relatively robust but look unlikely to maintain this pace for very long. A day of minimal fresh cancellation activity has left cancelled tonnage at its lowest level in just over two weeks and the ratio of cancelled tonnage in the system hovering at an equally low 2.5%. Only one location holds any significant amount of cancelled tonnage—Singapore with 6,975t, which explains why it is featuring daily draws, even if overall registered tonnage here is still trending higher.