LME stocks crept a little higher yesterday with both inflow and draw rates running at subdued levels.
We're expecting draw rates to accelerate in the next few days, thanks to steady cancellation rates which have lifted the ratio of cancelled tonnage in the system to 4.1%. It's still a low level by historical standards but in outright terms the 33,125t in this category is the highest it's been since mid-January.
Yesterday's activity included another round of cancellations at Rotterdam, lifting cancelled tonnage at the Dutch port to 13,500t, equivalent to a high 16.5% of total registered tonnage here. It's unclear whether Wednesday's small departures marked the first movement from the recently-cancelled metal or whether it came from residual stocks but the build in the cancelled pipeline suggests we'll see accelerated draw rates in the coming days.
The same holds true at Gwangyang, which has been inactive over the last two days but holds 6,225t of recently (Friday) cancelled warrants.
A full analysis of exchange stocks movements in February is our lead item in this section today (see above).
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