I must have been in the same tourist bus Mook!Lets hope its...

I must have been in the same tourist bus Mook!

Lets hope its settling back to a level where fundamental consumer demand takes back over which was previously around $1.50/lb.Even the Indians have been reducing the % of zinc in some products prepared to sacrifice the life of the steel in the product due to the apparent expense.So perhaps in combination with the higher input price of iron ore and other constituents the price of zinc has been too high at around $2/lb even though we were saying they would pay much higher with the lack of zinc that goes into such products.

Draw rates from the stockpile have picked up in the last week but unfortunately this last drawdown of 825t seems to have been at the expense of the cancelled warrants which dropped by about the same margin.We still need to see a sustained increase in these cancelled warrants to be confident that drawdowns of 700-1000t are in the offing and its still not happening.

The other thing thats wacking zinc atm is that the CTA funds are getting out in droves possibly seeing the coming supply side responce over the next year or so.

d.