Here's a couple of interesting charts. The first is a chart of the regional physical premiums. That is the amount above the LME price that you need to pay to secure delivery of metal as opposed to ownership on paper. As you can see these prices have jumped this year.
The second chart gives the historical comparison of inventories, showing that last time global inventories were this low, the zinc price was about to rapidly increase.
The next chart shows projected metal deficits for the next decade. Note that this problem of zinc shortage is going to get worse not better. By 2021 the deficit would soak up all of Glencore's mothballed supply three times, and it only gets worse after that.
Cheers,
Tim.
