The Incredible Shrinking Zinc Supply, page-150

Does anyone know what percentage of total stocks the LME has? I think I recall some broker saying there were 2mt in total above ground back in April, representing 2 months supply. That would make it less than half with LME. Is it possible to see where the other stocks are and what their drawdown rate is? I see the Shanghai exchange holds up to 240000t at times, thus not much atm. That still leaves a lot unaccounted for.

A lot of analysts say forget using the LME as an indicator.Upmarket, you said the zinc spot price and LME inventory have a very tight inverse relationship, regardless of cancelled warrants, warehouse transfers, traders positions and other noise in the market.

I agree the one year chart shown in this thread does show that tight relationship. However over a longer period its a bit weaker. Dont see it as useless like the analysts though.Chart below tracking 10 years of price v LME stockpiles. From 2004 to late 2008 they inversely track each other pretty well. It breaks down for most of 2009 when they travel together. From 2010 on when stockpiles were reaching record levels, you would have expected price to drop a bit more than it did?