Look at the correlation this year for LME levels and price. Pretty weak if you ask me.
No idea about specific numbers but with changes in LME rules there has been plenty of flow out of LME warehouses to non LME over the past few years (the article touches on it but plenty of others that detail the changes in LME rules a few years ago and the metal moves out of the warehouses).
The 1Mt to <100mt also had the benefit of not having large Glencore Mines on C&M, Century, Dugald River, Gamsberg etc all not online. They are all online now as seen in the zinc TCs and will be reflected in the zinc metal eventually.
If Zinc consumers were very concerned about not being able to supply enough metal they would do all they could to secure it, sending zinc premiums sky high. They are at lows. Call me when zinc premiums start to rise significantly and then there may be some reality to a sustainable rally for zinc.
NCZ Price at posting:
33.5¢ Sentiment: Sell Disclosure: Not Held
