Value Microcaps Motherboard

[cliffvb]

Zinc and zinc stocks...LME zinc stocks have now dropped 8 days in a row and also for 15 of the last 17 days. One would never know it looking at the price of zinc which has also dropped over 8% in the last 8 days (including today which has a nice uptick). I'm sure the crummy condition of the general markets has much to do with it but I expect that sooner rather than later, the market will return to focusing on the zinc shortage and prices will head back up. LME inventories bottomed last December while prices peaked at over $2/lb. Today prices are down to $1.49 while inventories are back to within 6000 tons of their December low.

Looks good for zinc producers such as BWLRF and HBM which are old favorites of this board.

BTW, the inventories for Copper have also been declining recently dropping for 9 of the last 12 days. Nickel inventories have increased for 8 of the last 12 days, although inventories were still down overall 342 tons in that period. Perhaps current nickel prices are finally beginning to ration supplies.