RE:TrevaliNewbie01 wrote: Some help please I've been accumulating this thinking that zinc inventories are dropping so zinc should go up but yet zinc seems to be staying low, please help what am I missing.
LME inventories represent 24% of global supply. That leaves the other 76% in Chinese warehouses and off the grid proportions unknown. In the last few years encouraging LME drawdowns have always ended with large inputs that killed hopes of immanent squeezes--downward on supply, upward on spot zinc.
This time, so far, the responsible parties can't be bothered playing LME inventory games. Presumably they're busy meeting Chinese demand. Certainly, inventory has been going into Chinese warehouses since the end of their new year.
You can see how using LME inventory as a proxy for the entire supply picture has its limitations.
Several well reasoned posts here have pointed out that regardless of the inventory picture, Trevali really needs to prove itself operationally before it can be an effective proxy for zinc.
You're not missing anything. Trevali can improve operations. Visible inventories can continue to draw down. Add a catalyst to the mix--the resolution of the trade war--and Trevali shares could be most constructive.
GLTA
.