China drives surge in zinc price

US coins are made with zinc

The price of zinc has hit a seven-year high, driven up by runaway demand from China, which has become a net importer.

China consumes about one-fifth of the world's zinc, and analysts estimate the demand will rise 11-18% in 2005.

London Metal Exchange zinc futures have reached $1,255.50 a tonne - a price not seen since November 1997.

Chinese growth has persuaded analysts that zinc, whose price has lagged other base metals this year, is likely to outperform them in 2005.

AME Mineral Economics said that world zinc consumption would rise 260,000 tonnes in 2005, resulting in a global deficit of 280,000 tonnes.