MI aluminium stocks analysis: Back up through 900,000t

The LME aluminium stocks headline figure last week rose back up through the 900,000t level for the first time since July 2004. It did so thanks to another massive 28,675t net weekly increase in registered stocks, hot on the heels of the previous week's 39,000t surge. The bulk of last week's inflow came at Rotterdam over Monday-Wednesday (20,875t) before the action switched back to Baltimore on Thursday-Friday (15,450t). The only other location to feature significantly on the "in" side was Johor, which received 3,550t over the first four days of the week. Draw rates were faster last week than the previous week and fresh cancellations are currently running at an accelerated level—there were 20,675t of them last week. That's helped the overall ratio of cancelled tonnage edge up to 4.8% from 4.0% the previous Friday. That promises continued robust "out" side action but it will continue only to slow rather than halt the up trend, while this accelerated movement of metal onto LME warrant continues. Two weeks now and still counting…