Zinc the metal for 2006
- Thread starter YOUNG_TRADER
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Fab said:It should be a much better day than yesterday for resources today based on the LME performance overnight
yes
ZINC:
Bid/Ask 2.0695 - 2.0718
Change +0.0409 +2.02%
Low/High 2.0218 - 2.0877
should see some potential shine from KZL, CBH, ZFX, TZN
chops_a_must
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Anyone got any news as to why zinc is getting trounced?
chops_a_must said:
If you understand how the markets works then you would understand that nothing goes up in a straight line forever. At some points, people actually do lock in profits.
ZInc metal has more than doubled this year, and i wouldn't define 1.8% as "trounced".
chops_a_must
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It's down more than 3% on the one I'm using...
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4% at the moment. Looks like it might be a bad day for zinc on the ASX on monday
stoxclimber said:
I hope so.It will be a good buying opportunity.
I think zinc is headed for a bubble.Years of underinvestment in zinc mines means it will be a while before supply catches up with demand.Also demand for zinc is inelastic compared to copper.
There are substitutes for copper if prices get too high.There are no substitutes for zinc and steel has to be galvanised.Structures made from galvanised steel last 5 times longer.
Throw in the fact that zinc only accounts for 7% of galvanised steel means that high zinc prices can be somewhat absorbed.Current high zinc prices have not had an impact on demand.Zinc prices will need to go higher to curb demand otherwise inventories will be zero in about 90 days.
We have a bubble situation looming.
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YesFab said:Kitco says -4.01 % overnight but commsec commodities says +0.58%. Can anyone tell me how often these 2 indicators are refreshed
The sites themselves tell you, if you care to read from them.
Clearly if you are looking at a site that updates instantaneously on logging in (eg Kitco) it will be current info, but probably a time delayed feed.
I am not aware of (nor have looked for) live information from Comsec.
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specman said:
There are infact substitutes for Zinc that become increasingly viable with the present high price. These are cadmium, cobalt; and Yeast and Mammalein Metallothioneins for Yeast Copper Zinc Super-oxide dimutase.
noirua said:
Can't say I have heard galvanising steel with cadmium and cobalt but I guess it's possible in theory.I thought cadmium and cobalt are highly toxic and a cancer causing agent.Zinc is not and in fact I take zinc tablets to recover more quickly from colds and flus.
I'm certainly not an expert in the field but how difficult would it be to change the production procedure of the steel manufacturing companies going from hot dipped zinc galvanising to using cadmium or cobalt?
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specman said:
You are quite right about the toxic nature of the electroplating of steel with cadmium. This in itself is not a new process and is fairly widespread in the United States and has excellent adhesion qualities. In some countries where the toxic process does not matter there has been an increase in its use this year ( mainly China and India ), albeit for use mainly in batteries: http://www.who.int/ifcs/documents/forums/forum5/hm_agarwal.pdf
The following link covers cadmium processing: http://www.enthone.com/resources_detail.aspx?Page=cad.ascx
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All this fuss,
Zinc's previous resistance was $1.80, so it only makes sense that this should become new level of support, thus Zinc should march higher as it has and then fall back to this support level, consolidate and then move on higher
LME Warehouse Stocks 10 Nov 2006
Close In Out +/- On Warrant Cancelled
Zinc 95250 0 1550 -1550 82750 12500
See the figures? Zinc is loosing 1500t's a day!
I'm fully cashed up so I am looking for a good pullback to load up again, but that doesn't mean I'm going to scream the sky is falling because Zinc moves back to a support level,
If your concerned about a pullback (which IMO is overdue for the whole mkt) cash up and move to the sidelines and wait like I am
Zinc's previous resistance was $1.80, so it only makes sense that this should become new level of support, thus Zinc should march higher as it has and then fall back to this support level, consolidate and then move on higher
LME Warehouse Stocks 10 Nov 2006
Close In Out +/- On Warrant Cancelled
Zinc 95250 0 1550 -1550 82750 12500
See the figures? Zinc is loosing 1500t's a day!
I'm fully cashed up so I am looking for a good pullback to load up again, but that doesn't mean I'm going to scream the sky is falling because Zinc moves back to a support level,
If your concerned about a pullback (which IMO is overdue for the whole mkt) cash up and move to the sidelines and wait like I am
michael_selway
Coal & Phosphate, thats it!
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stoxclimber said:
I have a feeling it might not go down that much
Because you should keep and eye on "on warrant" and "ins"
http://www.basemetals.com/stocks.aspx
thx
MS
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YOUNG_TRADER said:
Hi Y_T et al, the following, although written on 17th October, seems to sum up the position of Zinc admirably: http://www.mining-journal.com/wms_magazine/wms_Mag_Breaking_News.aspx?breaking_news_article_id=873
???? Does this mean you have sold all your URANIUM stocks etc., Y_T. ????
michael_selway said:I have a feeling it might not go down that much
Because you should keep and eye on "on warrant" and "ins"
http://www.basemetals.com/stocks.aspx
thx
MS
MS
stocks move with the zinc price, regardless of movements in supplies
Stocks were still going down in May-June - but zinc stocks went south because the zinc spot price wasnt moving
CanOz
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YOUNG_TRADER said:
Good idea!
michael_selway
Coal & Phosphate, thats it!
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nizar said:
well corrections can happen yes
but the big picture is more important i.e. no "ins" and "on warrant" dropping
thx
MS
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Not quite, MS.michael_selway said:
The driving force of a base metal's fundamentals is always its rate of drawdown: This can best be noted through the volume of stock cancelled as a percentage of total stock.
Typically when this rises above 10 percent, a metal's fundamentals tighten and we need inflows in oder to move back to "balance".
Balance is typically where cancellations are around 5% of total stock.
It would seem looking at those links that using cadmium is not a cheap process so it's a moot point.noirua said:
I should have said that there are no economically viable substitutes for zinc in galvanized steel.Perhaps aluminium could be used but I'm not sure how adhesive that would be .
Substituting copper pipes with pvc is very straight forward and economical but finding a substitute for zinc would not be as easy.
