China's emergence as one of the world's leading economic powerhouses and premiere driver of global zinc demand will set the industry standard for years to come and dictate where future market balances will lie.
"Like it or not, China has truly become the most major force in the world of zinc," said Christopher Parker of Brook Hunt.........................................
Following a year in which the price of zinc CMZN3 rallied over 140 percent, Chinese mine production grew by only 7.6 percent in 2007, substantially lower than the 12 percent annual average of the previous four years.
"Finally, we have some proof, some firm evidence that China is not a bottomless pit of ever-expanding mine production, and there is now less ore available to be accessed by the swing capacity of the small mine sector," Parker said.
"The next period of super-growth is probably dependent and must await the identification of new ore deposits and the development of new mines."
A very good Reuters report out yesterday that covers the International Zinc Conference happening this week. The note quotes Brook Hunt's Christopher Parker (now corrected from 'palmer'...oops sorry Chris) pretty extensively and here are a couple of excerpts. Metalheads should take time out to read the whole article, however. Plenty of food for thought and recommended reading.