I used to think that declining zinc lme inventories would lead...

I used to think that declining zinc lme inventories would lead to increasing zinc prices. It seems recent history suggests that it isn't as simple as this.

I guess one also needs to consider what is happening to supply/demand conditions outside the lme inventory and i suppose recently there must have been an excess in supply over demand in this area.

Institutions may also be distorting market forces.

Am i correct in making this assumption??