i love these zfx bashers, page-18

China consumption to increase to between 4.5 and 8%. Forecasts for demand to 2010 are suggesting 50% increase and these figures have been the driver of prices. China is committed to exporting high end finished steel products and, until that industry reaches an apex, demand for zinc will continue to grow.

'07 mine production will be around 11150kT or lower, consumption will be at least 11360kT.

Supply is higher than expected because higher prices has meant that a number of mines scheduled for shutdown have been able to continue operating as they dig out the last (formerly unprofitable) reserves

There are a bunch of new mines as well starting up this year.. but none of any real scale other than San Cristobal (which have hedged 50% of their production at cost... remains to be seen if this venture doesnt go bankrupt or be nationalised.. and it wont start to the very of the year), and Dairi (Herald Resources).. which is bogged down in Indonesian bureaucracy awaiting its forestry permit. Most of the other mines are <60kT/pa and will as a result have high production costs due to lack of an economy of scale. As zinc price goes lower, the profitability of many of the restarts will become marginal.

There are only about 14 mines in the western world of size over 100kTpa operating - in order - Red Dog, Century, Rampura Agucha, Brunswick, Mt Isa, Antamina, Tara, Lisheen, Broken Hill, McArthur River, Iscaycruz, Golden Grove, Kidd Creek, Cerro de Pasco, Yauli.
Some of these mines are in their final years and will not be replaced easily.. so any positive movement in the demand/supply will be fleeting.