I'm not which has transpired exactly but basically there has been a continued fall in headline stocks and one big rise in backorders.
Headline - 815,700 (down from 890,000 in Aug)
On Backorder - 87,000 (up from 60,000 or so)
Backorder was flat for a month but just picked up today as well as did a further fall in headline inventory.
The net effect is 728,700 of available unsold zinc, which was sitting around 760,000 for almost a month. What's amazing is that I have not seen any inflows of stock or very little into the warehouses. This would confirm that demand for the metal is high and that the possibility of a deficit next year is looking even better.
I would expect zinc prices to jump 20-30% from current levels should this trend continue.
KZL Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
