Unfortunately, for the time being, zinc seems along for the ride as industrial metals weaken on concerns about China‘ H2 slowdown and USD grows increasingly frothy-mouthed about those tax cuts.
I think there’s many conplicated questions about zinc short-term price direction
On the one hand, LME inventories are plunging to historically-low levels and approaching deficit toward EOY CY18. At some point realities of supply will surely demand zinc be decoupled from its peers...
But theres’s also some unusual activity occurring with respect to LME warrants which could create a wildcard for ST price movements:
“...Indicating a potential squeeze in nearby zinc availability, LME data showed one entity holds between 80-90 percent of physical zinc warrants as well as cash and “tomorrow” contracts...”
https://af.reuters.com/article/africaTech/idAFL8N1O6288
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