RE:Any Opinions?@tiger - I do not have an explanation but looking a Teck's presentation my provide a partial answer:
https://seekingalpha.com/article/4129036-teck-resources-teck-presents-goldman-sachs-metals-and-mining-conference-slideshow?ifp=0
see slide 82:
- 88% of LME stock in New Orleans (NOLA)
- LME Metal is in slab zinc(70% of US demand is from steel mills demanding customized jumbos)
- Majority of NOLA zinc is from European origin/duty unpaid(1.2%):1.6 cents on 3k/t zinc
- Majority of zinc from ~2008-2010
(concerns about condition/has white rust, which causes high dross) - Customers rejecting NOLA material If the last two points are true this might explain why the on-warrant stocks are not changing. Baisically customers do not want this zinc. If this is the case the price might have a big jump once those customers start buying again. Where will they buy????
tiger6301 wrote: LME Total inventory level has been dropping, however, the On-warrant has keep basically the same. The on-warrant was 161,600 from October 30 to November 14. Since the on-warrant level increased to 164,350 on November 15, it has kept the same until yesterday. It seems No one buy or sell, and only the cancelled warrant keeps leaving the warehouse. Any opinions or explanations?
tiger