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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (50158)	10/8/2007 3:32:40 PM
From: jackjc	Read Replies (1) \| Respond to of 78419

Yes Zn under 60kT, and Shanghai Fri report way down also. But Veneroso says there are a million tons stashed away of Zn and of Cu and others......................................................... Eventually prices have to show who is right.

To: marcos who wrote (50158)	10/8/2007 3:34:12 PM
From: loantech	Respond to of 78419

Read something lately zinc supply supposed to increase by 250,000 tons in 2008?

To: marcos who wrote (50158)	10/8/2007 8:00:45 PM
From: Mr. Aloha	Respond to of 78419

The market is forward looking, and has been pricing in expected coming oversupply of zinc for many months now, even as zinc inventories continue to hit new lows on both the LME and in Shanghai. If it doesn't come as big as expected, or if it does come and then people realize there will be a big deficit again after that because of the dearth of large zinc projects after San Cristobal, zinc should return to favor. I think everyone is overestimating the supply from China and underestimating the depletion of reserves from old mines, as well as underestimating the risk of supply disruptions. So far, the zinc supply/demand equation has clearly shown consistent sizable deficits the past few years via declining inventories despite predictions of oversupply. Will the predictions finally be right next year? Eventually, inventories will be so low that there can't be any more deficits, and if oversupply doesn't come, prices will have to rise to decrease demand enough to maintain minimum inventories. One way or another, the deficits can't continue forever -- it's a very tight market with only a couple days of inventories left.