I pulled this from an article on the Zinc market on reuters yest - I reckon it's a good summary:
Bad Timing?
Timing zinc's price peak is turning out to be just as tricky as timing the original rally.
There were several false starts to that rally as funds bought into the zinc deficit narrative only to be wrong-footed by sudden, large-tonnage deliveries of zinc into the LME storage network.
LME stock signals turned out to be a poor proxy for underlying market dynamics.
The question is whether they are any more reliable right now. This month's deliveries of metal into LME sheds may not be a sign of imminent surplus but simply a normal market reaction to the elevated cash premium. That premium is predicated on a lack, rather than a surplus, of metal in the LME system.
Zinc bears are betting rising stocks mean the days of surplus have arrived.
If they're wrong, there will be more pain for short-position holders in the weeks ahead.
RVR Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
