MI aluminium stocks analysis: US flood continues

Monday brought a continuation of the recent flood of metal onto LME warrant with both Baltimore and Chicago featuring—it has been one or the other in the last week or so. LME stocks have risen every reporting day since Aug 31, since when the cumulative build has been a massive 107,500t. That’s a net figure and includes what has at times been robust "out" side action. Draws actually dropped a gear yesterday, as have fresh cancellations over the last couple of reporting days. But there is still plenty of metal in the cancelled tonnage, which could easily support a pick-up in daily draw rates. Note the continuing focus of cancellation activity on the Asian locations, even though the net effect Monday was slightly damped by some "reverse cancellations" at Singapore. Interestingly, NYMEX-warranted stocks are moving in the opposite direction, the headline figure falling by 352 tons to 17,778 tons (16,128 metric) yesterday thanks to draws out of Toledo.