RE:inventoryI think that as long as the negotiations on treatment charges for 2017 are not completed the smelters will do whatever is possible to keep the LME level around the 380 mark. Keeping the lid on zinc prices is on their best interest since this will serve to set a maximum price for the year. Having a lower ceiling allows the smelters to rip greater profits, assuming that the escalators for higher prices are not removed.
Once the negotiations are done then it is in the smelters best interest to let the prices run. I expect to see a big jump in LME drawdawns and consequently a push for proces to go above 3k once the negotiations are done.
aaaaaargh wrote: looks like our Monday morning zinc dumper is back again. We have a rise of 3200 ton today. Hopefully we can knock that back down tomorrow. Good news on finding another deposit at Caribou....