re: headed down the cr.pper, page-5

re: headed down the cr.pper.fed LME inventory levels now down to 246,950tonnes down 1,500 overnight. Biggest one day drop in inventory levels for a few weeks.

It really is the only metal that can justify on a fundamental basis the surge in its metal price. The zinc price may be all over the place for a while yet as hedge funds continue to turn the LME into a speculators playground.

In the next few months though we will definitely see the fundamentals of zinc begin to really be the driver in the zinc spot price.


Fundamentals include: (i.e continual drawdown of zinc LME levels, shortage of major undeveloped zinc projects, decreased supply at major zinc mines, larger mines currently in operation not having very long mine lives, china economic boom to continue, china to be increasing their galvanising rate (still galvanising at rates much lower than japan/korea/western countries who galvanise at 20%), demand for zinc in India increasing rapidly due to higher demand for vehicles and infrastructure )

The next few years will be a very exciting time for zinc. $2 plus zinc price at the end of the year I do not believe is an unrealistic expectation. IMO it will be the best performing metal for the next few years at least.

Cheers