March 10 (Reuters) - Almost 40% of London Metal Exchange aluminium inventories have been cancelled, or earmarked for delivery out of approved warehouses, as industry sources say the metal could be shipped to countries left short by the closure of the Strait of Hormuz.
* A total of 98,150 tons of warranted aluminium - thatavailable for delivery - was cancelled in warehouses in PortKlang, Malaysia on Monday, LME data shows. * It was not immediately clear which entity or entities hadmade the cancellation or why; the backwardation structure in themarket typically attracts metal to the LME. * Worries about tighter supplies have created abackwardation, or premium along the aluminium contract maturitycurve. * The premium for the cash LME aluminium contract over thethree-month forward hit a high of $59 a metric ton on Monday,the most since February 2022 in the immediate aftermath ofRussia's full-scale invasion of Ukraine. * Total LME aluminium stocks are at 452,375 tons, the lowestsince July - and 39.5% of that volume has been marked fordelivery out. * More than 45,000 tons of aluminium were cancelled in LMEwarehouses in Port Klang last week. * Gulf smelters Qatalum and Aluminium Bahrain have alreadydeclared force majeure to customers as they are unable to shipdue to the conflict in the Middle East.(Reporting by Tom Daly; Editing by Chizu Nomiyama )
