This year the majority of economies continue their growth (more or less) which provide a good platform for metal, include zinc. Lots of people warry Chinese will become a net exporter and will reduce price. My analysis is it hard to happen in midium and long term.
Chinese firm export zinc because their domestic price is higher than LME one. Now the two price almost similiar and the export incentive for Chinese firm has reduced. The key factor is the continuing growth on the world economy cause strong demand can eliminate the increased supply. US is still OK, and China will mantain its fast growth. In 2000 their urbanazing development build one Chicago/year and now one and half. How much zinc they spend? They will become a net importer again (in a short term).
No matter what kind of funds play the game, market will finally determine the price.
ZFX
zinifex limited
