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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn -- Ignore unavailable to you. Want to Upgrade?

To: Kelly Sheppard who wrote (55)	2/10/1999 12:31:00 PM
From: Stephen O	Read Replies (1) \| Respond to of 3270

SOMETHING'S "UP" IN THE BASE METALS: We find it interesting that one by one, the most basic of all industrial inputs, base metals, are rising in price rather than falling. Nickel prices, for example, have risen from below $4000/metric tonne toward 4,700. The lows were made in October of last year and again in early December. There are reports (as yet unsubstantiated) that Inco Ltd. is considering cutting back its production, while we read that Falconbridge is considering the same... as long as Inco moves first! We would be more impressed with nickel's rise if it were co-extensive with a move toward backwardation in the LME futures, which would indicate that demand too was increasing. For now, we shall simply not that nickel prices are up nearly 20% in price in only a matter of a few weeks.... something that those who watch only the CRB might not be aware of. The same is developing in the Zinc market, with prices closing above $1000/metric tonne for the first time since last September. Lead is also acting modestly bullishly, moving from a low of $460/metric tonne only a month ago to $510 presently. Before we get to carried away with rising base metals, it should be noted that copper remains bearish and that aluminium remains bearish also. When all of the base metals are rising, then our interest shall be piqued, and our concerns for the bond market heightened. For now, call it interesting information on the periphery of the capital markets.... ammunition to be used later. Source THE GARTMAN LETTER WEDNESDAY, FEB. 10, 1999 Fax: 757 238 9546