RE:RE:RE:RE:Headed to support at CA$4.20, US$3.40Alf, the CIBC has come out with a report that zinc will be in critically short supply in 2018. An economist would tell you that the supply of zinc is inelastic. In other words it takes a long time for supply to react to a change in price. When prices drop, the supply takes a long time to decrease because of the large capital cost already spent opening a mine. They will keep producing as long as prices remain above their cash costs, and sometimes even after that. When prices rise these same companies have been losing money for so long they are reluctant to restart production. Some have gone bankrupt. Because of low prices exploration and developement have been almost non existant for years. When prices have been high long enough to encourage new mines it can take ten years to develope a brand new mine. Base metals always do best when it is late in the business cycle as output expands. Barirng an economic slowdown, base metal prices should rise for some time to come.