Base metal prices resilient

Despite all the bad news we are hearing about the economy, its interesting to reflect on commodity prices. Given the weak overtones, you might have been expected to see weakness in commodity prices. Well they have been surprisingly resilient. Copper has fallen to $US2.90/lb, but its back up over $3.00/lb. Zinc and lead are fairing even better.
I would like to think that its a sign of incredible resilience in the global economy, but I dont think so, or at least its not the whole story. I think its a shortage of metal, or more specifically delays and difficulties commissioning new mine capacity, combined with the odd strike, as mine workers attempt to benefit from some of the high metal prices. There is a huge shortage of semi-autogenous grinding (mills), tyres and a range of other consumables. Its evident that these shortages are delaying projects, and even hindering established projects. So whilst the global economy might we softening, there is little relief for commodity buyers. The reason I suspect this is the case is because metal stockpiles seem to be falling. Take a look at stockpiles at the LME and COMEX exchanges. Nickel is rising to medium term highs, but zinc stockpiles have been falling since Oct'07, lead stockpiles started falling this week, copper on the COMEX has falling stockpiles since Oct'07, and flat on the London Metals Exchange lately. Aluminium stockpiles have stabilised.
At the same time most of the commodity producing currencies have experienced something of a sell-off. eg. The AUD has fallen from 93c to 87c against the USD. So it all looks good for commodity producers. So I like Matrix Metals, given that its planning to expand output significantly.