MI aluminium stocks analysis: Cancelled tonnage hits fresh 07 high

While the headline LME aluminium stocks figure continues to meander somewhat aimlessly around the 935,000t level, cancelled tonnage in the system continues to trend higher. Thursday's 5,650t of fresh cancellations have lifted metal in this category through the 50,000t level to a fresh 2007 high. That promises accelerated “out” side activity in the coming days and note that yesterday's draw rate was the best in around a month, which may be a sign of things to come. Although Baltimore took the lion's share of Thursday's cancellations, note the continued movement of metal into this category both at Singapore and South Korea (Gwangyang) which extends the redistribution pattern we mentioned in yesterday's MI. Continued inflow at Baltimore and Chicago is the flip-side of this redistribution with US stocks still on an upward trend despite sporadic draw activity.