Zn price aint falling despite recent increases in supply (supply...

Zn price aint falling despite recent increases in supply (supply down today though by 625)

Is it possible that red kite is selling into the market progressively to add to supply everytime supply falls below 100k, or have they already unwinded all their postions in Zn????

Look at copper go; LME stockpiles going lower by large amounts every day due to china appetite.

Again, metals in general should do very well due to olympics in 1.5 years time - china has little time to get everything up to scratch and looking good. All infrastructure in beijing needs to be updated and or completed; all property developments up and ready.]

this equals huge demand 4 steel= huge demand for zinc.

its not gonna stop till mid 2008 esp.

Zn may be in a consolidating phase or down phase in the cycle, but much like copper, the appetite of CHINA pre olympics for metal is HUGE.

I think the chinese bought a tonne load of zinc in the last year as supply dwindled from 300K+ to 100K. theyll de-stock and then come back in again ala copper i believe.

theres too much industrialising going on = high demand for steel, which is good for zinc

In the long term , anyone that is invested in metals as part of their portfolio diversification will benefit greatly I believe

PEMs entry price now or this week should be a great entry point for those whom are lucky enough to have never bought and thought that they missed out.

the divvy yield is also good.

with the divvy where it as atm and the potential growth - youd have to think that sooner or later some instos gonna come in and buy up big.

When zinc resumes a bit of an uptrend and holds, this will probably happen.

Chinese bought a lot of zinc in last year ala copper in 05/06

theyll use it up and then theyll come back in I believe cause I have a friend who went to china for 3 weeks who says that theres development activity everywhere -large cranes, building . construction, development in the city too.

itll never end

long term we should be right and these are getting to be ridiculous entry points for such a good earner.