re: zfx. good prices, page-8

re: zfx. good prices Inventory levels show that there were in Jul 2005 630,000 tonnes and less than a year later there is 240,000 tonnes, which is being consumed at a rate of 700 tonnes per day. I wasn't saying they are going to run out as you rightly pointed out that the higher price should crimp demand (but it has yet too) and if anything demand will continue at this rate given the drop in price recently, so a critical point of supply is possible in 11 mths. There are no alternatives to zinc that I know of and new mine investment globally is some time from coming online to achieve full production, so business either absorbs the extra cost or passes the cost onto end users. Even a marginal reduction in demand would do little to change the fundamental problem of supply. A short-term buying opportunity nevertheless.