RE: RE: TAM refresher 3If higher LME zinc stocks would be a true indicator of future lower zinc prices then that would be already known information and built in in the actual zinc price and you could sell/short zinc now.
Of course such a simple connection cannot be valid without a huge market imperfection.
According to this site
https://news.alibaba.com/article/detail/metalworking/100222496-1-shfe-zinc--futures-price-%252823.html
zinc futures are higher the longer the contract thus indication the market have no clear fears for lower prices in the coming 12 months.
And - all things equal - a market in balance requires higher inventories for a bigger traded product.