Zinc was marginally up by 0.6% in the yesterday's trading session at the LME platform.
Broadly zinc stock piles have been declining. However the positivism on the inventory front is being negated by the cancelled warrants. Zinc cancelled warrants ratio of zinc declined from 519725 MT to 298425 MT indicating lack of immediate requirement for the metal.
We recommend buying zinc as the increasing demand for the metal combined with the mine closures in 2014 may create supply shortfalls and the latest release from the ILZSG also shows that the metal demand exceeded the supply by 34,000 tons in the month of November.