the zincs good, page-6

MI zinc stocks analysis: Downtrend accelerates

Metals Insider - 2008-05-07

The mini-downtrend in LME zinc stocks was interrupted for two days last week as arrivals kicked back in—at Johor in Malaysia.

But since then there has been no fresh warranting, while the draw rate has picked up in response to a better level of fresh cancellation in the last week or so.

This led to an acceleration in the downtrend Tuesday with the headline figure at one-month lows. Another day of solid cancellation activity yesterday promises sustained solid draws ahead of us, although overall direction will remain a function of whether arrivals remain absent.

LME Zinc Stocks

Previous 126,875

In 0

Out 1,525

Total 125,350

Open 119,425

Cancelled 5,925

Change -1,525



Location
In
Out
Cancellations

Johor
0
525
50

Rotterdam
0
0
1,000

Singapore
0
250
0

Dubai
0
525
0

Detroit
0
225
750
-----------------------------------------------------------
Interestingly reasonable cancellations in the UK/US and out side activity from Mid-East/India/Singapore-China.But it would be nice to see cancellations continue up to well above 10,000t,to be a bit happier about any second half deficit.

I still find it hard to reconcile the high iron ore demand(price increases)/hence steel production,and continued increase in the oil price/hints of Chinese stock-piling possibly due to a burgeoning Chineses auto industry(?)implying higher gal steel production.

But then the analysts are always right arnt they!!!LOL.

d.