We have an interesting divergence in the charts this week. The total deliverable copper or zinc in warehouses (see yellow line) increased last week, but the amount of copper minus what has already been scheduled to be moved out (black line) fell this week. The amount of zinc minus scheduled deliveries from the warehourse was flat. I'm neutral to slightly bearish on copper. I remain bearish on zinc although it appears that the $.80 price is the marginal cost of production. I doubt if we'll see zinc fall another 25%.
I'll be on vacation next without Internet access so I'll try to post the inventory numbers a week from Sunday. No other posts on the web site until then.
Leave me a comment with your thoughts on the outlook for copper and zinc prices at this point.