zinc crash ... here we go, page-15

US housing has been slumping for most of 2006 and guess what!! Zinc prices rose and zinc stock piles dropped from well above 150,000T to 85,000 T! Too many people put too much emphasis on the US and disregard the emerging economies! When I see LME stockpiles rising above 100,000 ton I will re-evaluate things. Until then, it's a correction in a fundamentally sound bull market. Do not disregard the fact that a lot of the large producers have hedged production well bellow $1. As these hedges unwind over the coming years, expect zinc to trade swell above current prices.