Here's part of a
Bloomberg
story on zinc prices
hitting new highs and forecast to go higher:
``Zinc looks as
though it's running out,'' said Adam Rowley, London-based analyst in an interview yesterday in Mumbai. ``When a commodity runs the price can go anywhere as we have seen in copper and nickel.''
Zinc rose to a record on the London Metal Exchange after inventories of the best performing commodity in 2006 fell to a 15-year low. Chinese zinc demand will exceed output by 400,000 tons this year, according to government-affiliated Beijing Antaike Information Development Co.
Zinc for delivery in three months on the London Metal Exchange rose as much as $35, or 0.8 percent, to $4,535 a ton, the highest ever. It traded at $4,518 as of 9:29 a.m. London local time.
``Zinc supply looks extremely tight, while the drawdown has increased in the past three years, demand has risen,'' Rowley said. This year's supply will lag demand by in excess of 300,000 tons, he said.
Check out the price chart for zinc from the
London Metals Exchange
. I have already written about the
China growth
story driving demand for base metals.
So how do US traders benefit from the commodity boom? One stock worth looking at is diversified miner
Teck Cominco
.
As the chart shows it has had a solid run since the beginning of October, and is now near its 12 month high. Teck Cominco ended 79c lower today and closed at $76.50.
Please do your own research.
