just plain tantalising.Time will tell but the Chinese must be a...

just plain tantalising.

Time will tell but the Chinese must be a little concerned that their zinc industry still needs rationalising.

Not much change in LME stocks numbers although cancelled warrants are still hovering above 10Kt.Question being which way will they break.Id be surprised if its to the high side again.But then after the rapid drop in the zinc price nothing should surprise anyone anymore about this commodity.

Lets hope its up so they can start to think about pushing for the balance of the cash required to get Perkoa going.
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Zinc Advances in London After China Scraps Tax Break on Exports

July 31-- Zinc rose on expectations a decision by China, the largest producer and user of the metal, to remove a tax break on exports will curb supply to global markets.

China will withdraw a 5 percent tax rebate for exporters of the best-quality zinc and silver from Aug. 1, the country's State Administration of Taxation said today. Zinc has lost half its value in the past year, declining to a 2 1/2-year low of $1,750 a metric ton on July 4.

``This announcement caused a quick jump in zinc prices,'' John Reade, an analyst at UBS AG in London, wrote today in an e- mailed note. ``This could be a trigger for a sharp move higher to $2,000 a ton or beyond.''

Zinc for delivery in three months advanced $30, or 1.6 percent, to $1,900 a ton as of 4:58 p.m. on the London Metal Exchange.

China's tax change is aimed at trimming a record trade surplus, and reducing pollution and energy use. Zinc output in the country rose 7 percent in the first half to 1.92 million tons, according to the National Bureau of Statistics.

LME stockpiles of the metal gained 1.9 percent to 157,325 tons today, the highest since Sept. 14, 2006. Zinc's canceled warrants, or stockpiles earmarked for withdrawal from LME- registered warehouses, soared a combined 70 percent yesterday and today to 13,475 tons, the highest since April 10, 2007.

Copper inventories grew 4,450 tons, or 3.2 percent, to 142,400 tons, the highest since Feb. 29, according to the exchange's daily data.

Copper Prices

The benchmark copper contract added $35, or 0.4 percent, to $8,065 a ton. It has advanced 21 percent this year and traded at a record $8,940 a ton on July 2.

The gains bolstered profit at Anglo American Plc, the world's fourth-biggest diversified mining business. The London- based company's first-half net rose 27 percent. Anglo has $15 billion of projects under way and is considering more as it seeks to increase growth in metals including copper.

``We expect commodity market fundamentals to remain strong,'' Chief Executive Officer Cynthia Carroll said today at a presentation in London. Chinese demand ``will create the potential for a sustained commodity up-cycle,'' she said.

Lead's canceled warrants jumped 61 percent to 8,325 tons, or 9 percent of total exchange inventories. Almost half of the stocks were scheduled to leave from Long Beach, California.

A lead recycling plant managed by Quemetco Inc. in California was shut after a July 3 fire. It has an annual capacity of 120,000 tons, according to Fortis.

Lead gained $28, or 1.3 percent, to $2,208 a ton.

Among other LME-traded metals, aluminum rose $17, or 0.6 percent, to $2,977 a ton and nickel dropped $300, or 1.6 percent, to $18,450. Tin lost $250 to $22,250 a ton.