MI aluminium stocks analysis: Marginal downwards bias

LME stocks of primary aluminium edged lower again Monday, reversing a similar marginal net rise on Friday. The overall trend is a slight drift downwards but continued low cancelled tonnage suggests slowing “out” side activity in the coming days. Singapore was the only active location on the “in” side Monday, extending a recent trend for most arrivals to be focused here. Draws were relatively robust given low cancelled tonnage with Singapore again dominating the picture—unsurprisingly since it holds by some margin the largest concentration of cancelled tonnage. And it still does with 6,225t in this category after Monday’s action. Fresh cancellations perked up to 2,300t but that has done little more than halt the slide in cancelled tonnage. The ratio has improved only marginally to 2.3% from 2.2% on Friday.