MARKET TALK: Zinc Supply Worries Prevent Mkt Slide

Fears over the security of zinc supplies are likely to prevent significant downward London Metal Exchange price moves for the time being, says Numis Securities analyst John Meyer. There is "considerable scope" for a recovery back to December's $4,580 a metric ton high, Meyer notes. "New production is scheduled to come on stream, but the market remains very sensitive to outages," Meyer adds. LME stocks are low at 98,575 tons, less than three days of consumption. LME zinc trades last at $3,612/ton, up from $3,605/ton overnight.