SHENZHEN, China, Nov. 14 -- China's production of refined zinc will rise by near 4 percent in 2011 from this year and consumption will climb 7.8 percent, an analyst at state-backed research firm Antaike said on Sunday.
China is the world's top producer and consumer of zinc used in the auto, infrastructure and home appliance sectors.
"About 350,000 tonnes of new capacity is expected to start production in the fourth quarter of this year and that additional capacity will mostly reflect next year's production," Liu Fan told Reuters on the sidelines of a conference in Shenzhen city in Guangdong province.
Liu forecast China's refined zinc production at over 5.2 million tonnes next year, from just over 5 million tonnes expected this year. That would be a rise of nearly 15 percent from 2009.
The country will hold annual capacity of over 6.3 million tonnes of refined zinc by the end of this year and capacity is likely to rise further next year, Liu said. He provided no estimates.
Zinc galvanized steel production will increase next year, which could help drive up consumption of refined zinc by 7- 8 percent to around 5 million tonnes in 2011, from 4.65 million tonnes expected this year, Liu said.
Liu's consumption estimate for 2011 is smaller than a 10 percent rise she had predicted for this year.
She said investment demand such as investors' stockpiling had been strong this year, pushing up 2010's demand growth.