MARKET TALK: LME Zinc Building Base As Stocks Decline

LME zinc appears to be slowly building base at current levels, supported by declining stocks at LME warehouses, down 4,100 tons last week, says Standard Bank. LME 3-month zinc last quoted at $3,660/ton, untraded in Asia, down $10 on London Friday PM kerb. Adds next key technical resistance at $3,800, break above would set up test of $4,000, last traded at that level Jan. 5. JPMorgan also says break above $3,800-$4,000 possible in 2Q due to zinc being oversold in 1Q, but carry through unlikely as supply to grow +11% in 2007.