What Today's Inventory Surge MeansIt doesn't mean all that much.
We have enjoyed the benefits of zinc scarcity caused by cuts to production by Glencore.
We can't really complain too much about todays inventory slam by, presumably, Glencore.
It just points to something we already knew, namely, that inventory levels in London and Shanghai don't tell the whole story.
I do think the Shanghai numbers are becoming more important and LME less so--China is where the action is.
Trevali will shortly be reporting massive profits.
Zinc remains in a supply deficit.
I've been awaiting the day when inventory drawdowns create a supply squeeze propelling zinc dramatically higher. It would be nice if that happens. But it doesn't have to happen for the zinc bull market to remain intact.
And I'm invested in Trevali because we are in that intact zinc bull market.
I recommend that you all do the same.