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Gold/Mining/Energy : Breakwater Resources (T.BWR) -- Ignore unavailable to you. Want to Upgrade?

To: jack marshall who wrote (597)	1/21/1999 11:05:00 AM
From: Stephen O	Read Replies (1) \| Respond to of 962

Zinc Jumps as Drop in Inventories Signals Rising Demand London, Jan. 21 (Bloomberg) -- Zinc jumped more than 3 percent, its biggest rise in 10 months, on signs that demand from manufacturers is outpacing supply from mines, forcing consumers to draw from exchange stockpiles. Zinc inventories during the past year have steadily declined, and stockpiles in today's daily report dropped by 425 tons to 319,450 tons, the London Metal Exchange said. LME inventories are about one-third lower than a year ago and earlier this month reached a 6 1/2-year low. ''The fundamental picture is still good for zinc,'' said Tariq Salaria, a base metals analyst at Brandeis (Brokers) Ltd. in London. ''As floor trading opened we saw a surge of buying.'' Zinc for delivery three months forward on the London Metal Exchange rose as much as $30 a metric ton, or 3.2 percent, to $979 a ton -- the biggest one-day gain since March 16 and the highest price since Dec. 16. Much of the buying came from speculators, traders said, who had sold metal they didn't own expecting that prices would fall. Today they bought back some of their positions, fueling the rally, traders said. Zinc's main use is as a protective coating for steel, which is then used for roofing in the construction industry, as well as in the auto industry. --Andy Webb-Vidal in the London newsroom (44-171) 330 7743/tc