MI alloy stocks analysis: Cancellations surge

LME-registered stocks of alloy trickled a little lower yesterday with single-lot draws of DIN226 ingot out of Rotterdam and Singapore. The over-riding downtrend remains in place but it's lost much of its momentum in the last couple of weeks, reflecting attrition in the cancelled tonnage pipeline. That changed yesterday with a big tranche—1,420t—of DIN226 cancelled at Singapore. That's boosted cancelled tonnage to one-month highs and suggests a re-acceleration in draw activity in the coming days.