RE:RE:PerceptionVoxContrary wrote: Good point BlazesB.
I must admit, I have not studied the zinc (or lead) market in nearly as much depth. What are the expectations for zinc supply/demand? Is the demand for galvanized steel expected to grow? Does zinc have any ability to replace nickel as nickel prices continue to rise?
Hey Vox. SCZ is a silver miner only until the acquisitions close and it appeared the market viewed it that way...refreshingly straightforward given how much in the dark we are about the company these days. And the ceo did buy those shares in the open market recently...which signals the deal will close? We'll see.
Zinc is in a bull market--$1.60+.lb is insanely high--but how much of that is due to covid and how much to industrial demand is hard to know. Same for all the metals these days.
You can track inventory drawdowns daily in the LMX (London Metals Exchange) warehouse stats but they are no longer the only game in town as they once were. The Shanghai Metals Exchange has its own daily tonnage drawdown numbers. Two inventorys completely independant of each other which on the surface you might think make for a coherent combined picture of global demand but somehow they don't.
Zinc is dominated by a few big players. It is not unusual for London inventories to draw down by two thousand tons every day for a month or more confirming bullish demand only to see 20,000 tons or more slammed into the inventory in a day.
Zinc demand should grow with the green economy. It should grow with American infrastructure demand. Galvanized steel demand will grow. I haven't heard of zinc replacing nickel before. All in all there should be plenty of demand out there for the foreseeable future.
I spent a couple of years sweating zinc as a Trevali shareholder and expect to do the same re:SCZ should the acquisition close. At a Trevali shareholders meeting the ceo said that while Chinese demand had driven the market it was the anticipated 1.5 billion newly urbanized people worldwide that would drive future demand.
We shall see.
Cheers..