Korea Zinc(010130): Zinc price resuming rally
- Company update
- Reiterate BUY and TP of KRW117,000
> On September 7, 2006, LME zinc spot price reached USD3,600, surpassing the previous high of USD3,550(July 14).
> Given the current fall rate, zinc inventory will be used up by 1Q07.
> As the market is likely to see deficit of 400,000 tons in zinc supply for both 2006 and 2007, zinc price will inevitably rise continuously.
> Zinc price is likely to set a new record in 4Q06. |
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