RE:RE:RE:RE: Glencore GuidanceStagnant inventory levels are a good thing. Producers are not restarting production BECAUSE official LME/Shanghai inventories aren't going down. That inventory overhang isn't putting a lid on prices. It's putting a lid on production.
The only inventory being drawn down to meet demand is unregistered and since no one knows how much is being sold it isn't perceived to be affecting prices.
But it has to be affecting prices. It keeps them from going much higher!
Regardless, until registered inventory starts to draw down, and it will, producers--see Glencore today--have no incentive to restart production and knock down prices. So keep those official inventories high!
Meanwhile smelter refining fees for concentrate are at all-time lows. They remain the best single indicator of scarcity and, therefore, increasing zinc prices.