Waiting for deficits

摘要

Zinc prices are consolidating after pulling back to correct some of the gains seen in theaftermath of the Glencore’s cutback announcement. The consolidation may well turnout to be a bull-flag – the precursor to another leg up. For that to be the case, we feel themarket will now need evidence of a sustained supply deficit and that may take time toemerge. The latest ILZSG data showed the market remained in a supply surplus in theJanuary to August period.