I read a lot of zinc related articles and have not yet seen a zinc industry expert who forecast serious oversupply by 2010. Every serious article I have read sees significant problems ahead in zinc supply. Forecasts are for oversupply this year and typically estimate 50k tonnes - that's nothing.
There are only 2 major projects in a position to come on stream in the next 5 years that have the size to significantly impact on supply-demand. One is Mehdiabad in Iran which is indefinitely frozen in a dispute between the govt shareholder and UCL. Further, the longer credit markets remain in turmoil and the longer zinc price struggles the further back we will see proper exploration and development.
Zinc stinks right now but will gleam in 18 months or so.
AGM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
