price action over the last two days, page-6

asteroider,
this is an article from investing news might help explain the zinc price.

Zinc hit a four month high in early trading as economic data out of the world?s two largest economies, the United States and China, bolstered overall market sentiment.

In the US, data showed that sales of previously owned homes rose unexpectedly in July, factory orders edged up and claims for unemployment benefits fell, squashing rumors that the country should brace for a double dip recession. ?Markets have become far too pessimistic about the possibility for double dip and the like. We?ll see increasingly better data through to the back end of this year,? said Tom Kendall, an analyst at Credit Suisse. On the LME, zinc rose to $2,175 a tonne from $2,133, having hit a four month high of $2,194 earlier.

Strong demand by the physical markets, combined with accelerating manufacturing growth in China this August, added to the positive sentiment. This data overshadowed the fact that zinc stockpiles remain at record highs.

Global production of refined zinc exceeded usage by 176,000 tonnes in the first half of 2010, preliminary data from the Lisbon-based International Lead and Zinc Study group showed. Global zinc mine output was up 13.5 percent to 6.047 million tonnes in the January-June period from the same six months last year, ILZSG reported.

In India, Zinc futures rose 1.28 percent, taking cues straight from the aforementioned strong manufacturing data out of China. Looking forward, it is believed that MCX zinc will trade with a positive bias, in line with copper prices. Zinc stockpiles are at record highs, however, stocks dropped by 550 tonnes yesterday; canceled warrants also rose.