Bloomberg reported that zinc fell on the London Metal Exchange, ending a three day winning streak, as inventories at almost a three year high revived speculation about falling demand for the metal used to galvanize steel in cars. As per report LME index of industrial metals had climbed 7.1% this week close on speculation government spending on bridges and other infrastructure will spur demand. Zinc inventories in LME warehouses jumped 2,350 tons to 348,975 tons, the most since February 16th 2006. The US auto market had its worst month since 1981 in January as demand slid. Mr Randy North a trader at RBC Capital Markets in London said that “The car industry has just shut off completely. Once infrastructure projects get under way, both in China and the US that will take a lot of zinc away very quickly.” Korea Zinc Co forecast sales may drop as much as 38%in 2009. The metal has fallen 5.4% in 2009, joining aluminum and nickel as decliners on the LME.

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