RE:RE:RE:RE:Only 1 thing will move TV share price upSorry for the errors. Should have read, can you please provide link to Chinese zinc inventories? I was told they are at 100K.
Blazesb wrote: Just for fun I'll choose a different 'only 1 thing' though I actually prefer both the arguments made by Arizona and Lazer65.
A temporary squeeze in supply that propels spot zinc above $1.50. This while inventories are actually going up not down! LME business has migrated to Chinese warehouses and those inventories are at 200,000 with another much publicized 'low' 59000 in the LME. Reuters is consistently good at covering this subject.
So where's the squeeze? In refineries. Pollution control measures have drastrically restricted output in China and is well documented. To encourage manufacturing China has announced stimulus in the form of tax breaks.
LME drawdowns speak to this directly. When it comes to zinc China is back in sponge mode full throttle.
The other metals haven't even joined the party. Global economic numbers indicate a slowdown. And in the face of this what does zinc do? It rallies!
So, two months from now the LME draws down near to nothing. In China inventory flys in and out of warehouses faster than it can be replenished while concentrate is backed up and bottlenecked outside of refinerys.
Something's gotta give and that something is spot zinc. Add for once a little bit of cooperation from Trevali announcing Q1 earnings that reflect a Caribou fix. Throw in a face saving trade 'deal' and the share price is off to the races.
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