ask your self, page-5

Andrew,

I think it is simply that ZFX presents a good short-term buying opportunity at present levels. I'd expect volatility to continue until at mid Feb but most concur a short-term bounce is on the cards.

Takeover talk is just that...talk...

I trade on realities not market myth...

Lately I have reviewed the steel market, Chinese production/demand forecasts and now I've had a squizzy at the purchasing.com for insight...i.e. the professional buyers view...

I noted these comments at Purchasing.com Source

Zinc in shortage while nickel will remain tight.

But the big metals supply story is the lack of zinc metal because warehouses are nearly empty. Zinc stocks held by the LME have plunged to just 85,000 metric tons or so from nearly 430,000 metric tons a year ago. Prices exploded when development in rapidly growing regions including China, India and Eastern Europe accelerated, since their demand for the galvanized (zinc-coated) metals basic to construction and industrialization also sped up and depleted inventories.

Down the road, zinc supply may improve but not in 2007. “After several years of rising prices, the supply response is beginning to gain momentum and could overtake demand for zinc in the next year or two,” says BMO Capital Markets analyst Victor Lazarovici in New York. But, for early this year, LME stocks of zinc are expected to fall to nearly zero, predicts Barclays Capital analyst Kevin Norrish in London.

Conclusion: Zinc = Shortage