teck to close lennard shelf mine in august, page-37

lazydog

Just got ripped off - in the process of placing a Buy at $2.12 & it bolted to $2.24 [I smell a burnt bear].

In Post: 3119015 I provided the July15 graph for Shanghai zinc - contrasts sharply with LME zinc.

IMO zinc consumers have placed themselves at great risk of huge price rallies in base metals generally due to maintaining stockpiles at relatively low levels on the back of short term projected surplus [copper excepted].

IMO once closed marginal miners will not restart until profits are assured & prices stabilise - why would they? From OXR's point of view the larger comapny can now just tailor production according to demand & price - cash cow time!

I have great respect for the Chinese, they are very clever operators & know the value of accumulating real wealth only too well. IMO they are facing:
. Earthquake recovery costs - why bother with zinc while there is no incentive?
. Increased pressure from the US to increase the Yuan relative to the $US. Looks like the US will win that struggle one way or the other!
. Increased domestic competition for their increasingly stretched power supplies.
. Other areas of enterprise that represent a better investment or which demand much greater attention.
. Why not just buy up Aussie miners & energy stocks instead while they are so cheap?

4YIO - NFA