LME warehouse has dropped 26,000t THIS MONTH ALONE.
At this rate by the end of 2006 there will be 100,000t left which isnt much at this rate of draw down.
Add to this comments made by Zinifex management.
Prices probably will keep rising in the next two to three years because supply isn't expanding fast enough to meet demand from China, said Greig Gailey, chief executive officer of Zinifex Ltd., the world's second-largest zinc producer.
``It is difficult to see new mines coming in the next two to three years'' that are needed to meet rising demand, Gailey said in an interview from Davos, Switzerland, where he is attending the World Economic Forum. He declined to give a forecast for prices.
China's zinc consumption is expanding because of demand from steelmakers, who use the dark-gray metal to rust-proof steel. Chinese steel production rose 25 percent to a record last year, making it the world's biggest steelmaking nation.
Zinc will average 21 percent more in 2006 than last year, beating all other LME-traded metals for a second consecutive year, according to a Bloomberg News survey. The metal will rise to an average of $1,666 a this year, based on the average estimate of analysts in the survey. d.
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