Very nice. A massive speculative bubble has shifted from bonds to zinc over the past 2 weeks. Due to an all of a sudden bullish wave of wanton optimism for China under a Trump administration, brainless idiot traders have bid up the price of lead and zinc to unbelievably stupid levels, for reasons unknown to everyone.
Industrial metals have climbed almost 30 percent in 2016 after three years of losses as demand growth stabilized in China, President-elect Donald Trump pledged to invest in infrastructure and revitalize the U.S. economy, and mine closures curbed supply. Chinese investors have added to the speculative binge.
Zinc, the best performer on the London Metal Exchange this year, climbed as much as 5.4 percent to $2,970 a metric ton and traded at $2,954 by 3:23 p.m. in Shanghai. Lead advanced as much as 7.2 percent before trading 3.4 percent higher. Both metals closed up the limit on the Shanghai Futures Exchange.
“We’re bullish on zinc and lead given the tightness in ore supply and potential production cuts at smelters in coming months, but the speed of the rally exceeds our expectations,” Dina Yu, an analyst with CRU Group, said by phone from Beijing. “There have been no big changes in fundamentals that can explain such a surge. The market is driven by bullish sentiment in all metals.”
Zinc is higher by 80% this year, while lead is up by 40%.
According to Exodus, $SSRI is the only stock in a database of more than 4,000 stocks that has both lead and zinc mining operations in its profile.
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