MI alloy stocks analysis: Weekly downtrend accelerates

LME-registered stocks of alloy fell by 2,020t last week in what marked a further acceleration of the long-running downtrend. That was due to accelerated draw activity at Singapore, which lost 1,740t last week. The headline figure is now showing a year-to-date decline of 27,460t, or 27.7%. Arrivals remain conspicuous by their absence—the last were back in the middle of July—and while this remains the case, the downtrend has further legs. Cancelled tonnage fell slightly last week but strong draws were largely compensated for by robust cancellations—a total 1,500t moving into this category. That ensures that the cancelled pipeline can feed solid draw rates for several more days yet.