Interesting to read that zinc inventories are now very close to if not at 10 year lows. This is now lower than 8 days of consumption which is crazy.
When prices were higher there was plenty of unrecorded supply that hit the market. It will be interesting to see should prices break out above the current range if there's much of this supply left. I think this is one factor holding the zinc price back. If most of this unaccounted for supply was flushed out things could get very interesting soon enough though. I assume that investors/analysts are being at least a little cautious due to this as you can't exactly predict something that you can't see.
I've got no idea how it will play out, but feel it's a reason why despite demand seeming to be higher than supply that the price isn't responding accordingly at the moment (granted there is the higher dollar and trade stuff recently also).
With recorded supplies so low though, surely the price will have to jump up even more, very soon.
SL1 Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
