Over 130,000 tonnes of aluminium has been canceled at London Metal Exchange warehouses over the past two days with market participants expecting further cancelations by the end of the week.
A total of 94,300 tonnes was canceled on Wednesday January 23 on top of 37,500 tonnes on Tuesday - all of which was in Port Klang, Malaysia. "I wouldn't be surprised to see another 100,000 tonnes canceled by the end of the week - and that will significantly tighten the market," a market source said. "This isn't the end of the cancelations - we will for sure see more over the next few days and people will be holding back waiting to see what happens," a trader added. There are now just 903,700 tonnes of aluminium on-warrant in LME-listed warehouses, significantly lower than 2012 when the figure was over 5 million tonnes. But the stock level is still higher than the 2018 low of 605,750 tonnes, which was the lowest since 2007. "I wouldn't be surprised...