Zinc hits new highs

Zinc spot price has increased from $US1.035 to just under $1.07 in less than 48 hours and below is an article, amongst many, that explain the dynamics. Some are predicting zinc prices to ultimately reach the 2007 high of $US2 per lb.  



Google http://www.**promotion blocked**metals.com/charts/zinc_historical_large.html for the inventory and price charts and http://ironbark.gl especially the IBG presentation in bottom left, for more understanding.

METALS-Zinc, aluminium hit multi-month highs, copper steady Mon Jul 21, 2014 4:30pm
Three month aluminium on the London Metal Exchange closed up 2 percent at $2,020 a tonne, the strongest since Feb. 28, 2013.

Zinc jumped 1.9 percent to end at $2,336 a tonne, trimming gains after touching a near three-year high of $2,345 a tonne.

Inventories fall
Helping aluminium, LME stocks fell to 4.947 million tonnes, their lowest point since September 2012 Also, cash aluminium traded at a discount of just $16.50 a tonne to the three month price CMAL0-3, its narrowest since September 2012.

"Both zinc and aluminium stocks are showing downward trends, which are fundamentally supportive of the market," said Kryuchenkov. Daily average primary aluminium output excluding China fell to 67,000 tonnes in June, from 67,500 tonnes in May, data from the International Aluminium Institute (IAI) showed on Monday.

Zinc meanwhile continued to gain from falling production rates at large mines such as Century in Australia, with little in the way of giant new projects on the horizon. Also LME stocks MZN-STOCKS are at their lowest since December 2010. By contrast, the case to sell copper going forward is compelling, some analysts say.