The zinc price trend has undoubtedly turned to downside, says a report on the economic situation published by China's National Development and Reform Commission Monday.

Recent sharp fall of zinc price is mainly attributed to the bad expectation for the real estate market of the United States. Meanwhile, almost all metal inventories of LME are rising, adding a certain pressure on the price too.

The disparity of views on zinc market origins from different expectations towards the prospect of China. Concerns mainly concentrate upon the rapid expansion of production capacity, which will facilitate high growth of zinc output.

It is learned that China's zinc smelting capacity is likely to have in increase of 250,000 tons next year and it has only increased 150,000 tons this year. China's zinc supply growth is mainly decided by the supply of concentrated zinc ore.

The report points out that the global zinc supply is certain to grow generally, but doubts about consumption growth exist.

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