MI aluminium stocks analysis: Cancelled tonnage rising

Wednesday was another strong day for fresh cancellations, with a total 6,875t moving into this category. That follows hot on the heels of Tuesday's 6,325t and has boosted the overall ratio of cancelled tonnage in the system to 4.6%. That's the highest it's been in almost a month. Although Detroit featured on the cancellations list, the bulk of the action again came at Asian locations. Declining LME stocks in the region has been something of a (bull) talking-point over the course of LME week and the trend looks set to continue. Between them the two South Korean locations, Johor and Singapore hold 27,625t of cancelled tonnage, representing 64% of the system total. Mind you, the bearish talking-point around the LME circuit this week has been that another big tranche of metal may be heading onto LME warrant—around 100,000t for what the scuttlebutt's worth.