RE:RE:Current sentimentI expect zinc prices to explode once the TC negotiations are done. This will be triggered by regular/bigger drawdowns.
If this does not happen within the next 6 months then I'll be really concerned.
kramaswamy wrote: I would say the biggest thing holding Trevali back is uncertainty in the zinc market.
As much as analysts have called for the zinc shortage over the last five years, it really has yet to materialize. Inventories have more or less stagnated for the past year, and I think that is really holding back zinc prices.
This does seem to be strung up quite tightly. If zinc inventories were to start dropping at a more regular rate, I could see the spot prices rocketing upwards, but that just isnt happening. The month of March, for example, has seen a total drawdown of 10000.
Hopefully we see this increase over the next few months. If we can break 370000, thatt'l be quite good - the last time it was at that point was July 2009.