MI aluminium stocks analysis: LME activity slows, NYMEX boost

Activity in the LME system slowed further yesterday with again no arrivals and draws dropping another gear.

The latter is a function of low cancelled tonnage in the system, a situation that was not helped by a net movement of 1,250t of metal from the cancelled category back to the open tonnage category. That reflected “reverse cancellations” at Singapore and Gwangyang in South Korea.

Cancelled tonnage is now at a fresh 2007 low and there is going to be no sustained pick-up in draw rates until it recovers.
NYMEX-warranted stocks got a big boost Wednesday thanks to the warranting of 6,997 tons of T-bar at Owensboro. That’s lifted warranted tonnage here to 11,266 tons and in the system as a whole to 19,255 tons (17,468 metric).