well it is consolidating at the moment - it went up too high too fast thats all
as far as demand/supply, any major bottlenecks in supply will cause the price to spike up again - remember that below 100K tonnes we are at a 'critically low level of supply'
So part of the price sky-rocleting has to do with fundamentals.
look at coppers chart over a few yrs, look at nickels - same thingo
China produces and imports a lot of steel for their industrialisation.
as long as theyre industrialising and developing new cities - new buildings, new high rises, new bridges, new tunnels, new railways, new shopping centres, new corporate high rises/buildings, abundance of infrastructure needed for new cities................mate , STEEL will be used and in HIGH QUANTITIES, and zinc will be needed to anti-rust it
***there will be cycles within the metals bull market of course due to periods of heavy buying and then periods of de-stocking what was bought in large amounts. Overall though , through the highs and lows and the volatility I think anyone in metals in general and ZINC will prosper in the future cause china / india urbanisation and industrialisation is REAL ( I had a mate go there to CHINA for 3 weeks and he'll tell you!)
there are new cities to be built the size of brisbane for years to come.
There isnt MAJOR NEW SUPPLY of zinc coming on stream from any major blue-chipper that anyone can say.
We are at very low LME supply levels
thus given the HUGE demand form indoa for metals, if SUPPLY is disrupted in any way, the price will jump up again. Even if demand/supply is is balance, the LME supply levels are TIGHT and at low levels, and any bottleneck in supply will cause the price to jump given the high demand from china alone.
long term theres no worries
just go research china on the net or go there and see for yourself
(20min delay)