The LME headline figure rose back up through the 800,000t level for the first time since August 2004 Tuesday thanks to continued accelerated inflow.
It's clear that the LME backwardation is still sucking in metal and it's equally clear that most of the response to the backwardation is coming in the US. That said, Rotterdam, which has accounted for just about all the inflow in Europe in recent weeks, has received a cumulative 9,350t in the last six reporting days.
The Dutch port holds 82,025t of registered tonnage, although "out" side activity should start picking up soon after the cancellation of 6,575t last Friday. With 10,100t sitting in the cancelled category, Rotterdam now holds the largest concentration of cancelled tonnage in the system.
The second largest concentration is at Gwangyang, which has recently fed the daily draws and which now holds 6,525t of cancelled warrants, having itself seen a big 6,225t tranche of cancellations last Friday. Its absence yesterday was a key factor in depressing the overall "out" rate in the system.
The third largest concentration of cancelled tonnage is now at Singapore, which holds 6,025t of cancelled warrants. The fourth largest is the 2,600t sitting at Gothenburg, so it's not hard to see which locations are going to feed draw rates going forwards.
Draw rates are poised to accelerate again from Tuesday's low level but whether they will do so enough to compensate for the steady flow of metal into the system is a moot point.
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