The zinc price of the Shanghai Futures Exchange which plunged from 18,100 yuan to 17,750 yuan/ton last week is predicted to rally in the near future, due to the influence of the earthquake hitting Wenchuan, Sichuan on May 12.

   The quake has exerted a big influence in the production and operation of some lead-zinc plants in Sichuan including Sichuan Hongda.

   Sichuan Province last year produced 90,000 tons of lead-zinc ore, making up about 10 percent of China¡¯s total. According to a report of ATK, a nonferrous metal research body in China, after the quake, zinc smelting plants in the area have stopped production, and the production of zinc smelting plants with a combined production capacity of 500,000 tons in Sichuan, southern Gansu and southern Shaanxi, are also affected. Sichuan Hongda, the largest zinc smelting enterprise in Sichuan confirmed last Friday that its plant in Mianzu suffered a big loss.

   Analysts believed that if the transportation in Sichuan can not be improved in the coming two weeks, those lead-zinc smelting plants that haven¡¯t been affected by the quake will likely be forced to reduce production. At present, lead-zinc ore in Sichuan can not be shipped out of the province for the transport reason.