MI aluminium stocks analysis: Draw rate eases but still lower

The LME headline figure ticked a little lower Tuesday despite a sharp slowdown in draws. That was due to the absence of Gwangyang since the South Korean location has been the most active location on the "out" side in the previous couple of reporting days. It still holds 4,000t of recently-cancelled tonnage so we'd expect it to rejoin the actives list in the next day or so.

Without Gwangyang's contribution draw rates were low but just enough to offset a further tranche of warranting at Singapore.

The same location accounted for all the day's cancellations, which generally continue at a moderate pace. The ratio of cancelled tonnage in the system is a neutral-to-low 5.6% so, barring a further couple of hits from Gwangyang, we’d expect draw rates to continue at Tuesday's pace for the next period.