……why I’m not getting hot and panting about today’s move to $0.55/lb. If it breaks 60c, wake me up and ask me agin, yeah? Here’s LME warehouse stock for the same six month period….
….that’s a nice pocket signal of the slack demand out there. However the five year chart….
…does give us room for optimism compared with that long-term copper warehoused chart from earlier in the week. It’s a bigger subject to explain than can be done with the few lines I’m dedicating to this post, but let’s just point out that zinc is a more flexible metal on the supply side and it’s pretty quick and simple to put zinc mines into (and later out of) mothballs; ask the Australian mining industry if you don’t believe me.
Bottom line: nice to see the base metals, inclusing zinc, upping today. However there’s no reason to assume a continued rally right now. If the prices ad about 10% or so from here we’ll be off to the races.