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The consumption structure of metallic zinc and forecasts for domestic zinc prices. Zinc possesses excellent corrosion-resistant properties, as well as good thermal and electrical conductivity; it is easy to process. In particular, it can act as a sacrificial anode to protect steel structures, thereby **extending the service life of steel components**. For this reason, galvanizing has been used worldwide as a long-term corrosion prevention method. In the industrial sector, zinc is used in the galvanizing industry, accounting for over 50% of total initial zinc consumption. Galvanized products have been widely used in various fields such as industry, energy, transportation, chemicals, light industry, home appliances, construction, communications, and national defense. Since the galvanizing industry is the largest consumer of zinc, and with the development of the automotive and construction industries, there is an increasing demand for galvanized steel sheets and die-cast components, meaning that zinc alloys have a bright future ahead of them. The development of the automotive and construction industries is the main driving force behind the growth of galvanized steel sheets. Furthermore, in China’s various galvanizing industries such as hot-dip galvanizing, electroplating, thermal spraying, and mechanical plating, hot-dip galvanizing accounts for over 95% of the total galvanizing consumption. At present, the proportion of zinc used in galvanizing in China accounts for less of total zinc consumption compared to that in Western developed countries. However, in recent years, with the rapid development of industries such as electrical appliances, construction, power generation, and transportation, the proportion of zinc used for galvanizing in China’s zinc consumption structure has increased significantly, becoming one of the main drivers of zinc consumption. According to statistics from the Non-ferrous Metals Industry Association, the proportion of zinc used in galvanizing in China accounted for 36% of the total zinc consumption in the country by 2005, up from 31% in 2002. Since 2001, China’s construction industry has been experiencing rapid development ； At the same time, the automotive industry has also maintained rapid growth since its significant expansion in 2002. We expect that, with the steady growth of China’s economy and the improvement in people’s living standards, automobile production and sales will continue to show a rapid growth trend in the long term. The market for galvanized steel has broad prospects. On the other hand, the demand for galvanized steel in the power and transportation industries has increased significantly. The implementation of the Three Gorges power transmission and transformation project, the national power grid interconnection, and the project to transport electricity from the west to the east has led to an **increase in the demand for galvanized iron towers**. Furthermore, according to the **Highway Network Plan**, by 2020 China will have an **highway network of 85,000 kilometers**; at present, the length of highways in China is only over 40,000 kilometers. Construction will continue from 2006 to 2020, with annual investments of over 100 billion yuan. In addition, the construction of subways and urban light rail systems will also require a large amount of galvanized pipes and galvanized sheets. At present, the galvanizing rate of steel in China is only around 20%, which is a significant gap compared to the 55–60% rate in developed countries such as Japan and the United States. Therefore, galvanized steel sheets are generally still a type of steel that is given priority for development in our country. In recent years, investment and construction in the domestic galvanizing industry have seen rapid growth. Large steel mills such as Panzhihua Iron and Steel, Baoshan Iron and Steel, Anshan Iron and Steel, Wuhan Iron and Steel, Maanshan Iron and Steel, Benxi Iron and Steel, Handan Iron and Steel, and Tangshan Iron and Steel have successively built hot-dip galvanizing units. Moreover, the production technologies for the galvanizing plants built are all imported from abroad, ensuring a high level of equipment and high production capacity (typically 350,000 to 500,000 tons per year). The products offered are of high quality, and their sales markets are mainly focused on the automotive industry, home appliances, and high-quality building materials. Furthermore, private enterprises’ investments in the galvanizing sector mainly involve building separate galvanizing plants, with production capacities generally below 200,000 tons per year; the products produced are primarily intended for the general construction materials market. Statistics from the Iron and Steel Industry Association show that in 2000, China’s steel industry produced only 1.82 million tons of galvanized sheets; by 2005, this figure had risen to 7.5 million tons, representing a growth rate of 32.7% over those five years. It is estimated that China’s production of galvanized steel sheets will exceed 11 million tons in 2006; assuming that 40 kilograms of zinc are consumed per ton of galvanized steel sheets, this will result in an additional 140,000 tons of zinc consumption. Metallic zinc is widely used in the industrial sector. Zinc possesses excellent corrosion resistance, as well as good thermal and electrical conductivity; it is also easy to process. It is an important raw material for non-ferrous metals, and its consumption ranks second only to that of copper and aluminum among non-ferrous metals. The consumption structure of zinc is quite stable: approximately 50% of its consumption is used for anti-corrosion coatings, 19% for the production of brass, 16% for the production of zinc-based alloys, with the remainder being used for rolling zinc sheets, as well as in the chemical and pigment industries. At the same time, zinc and many metals can form various alloys with excellent properties; the most important of these alloys are brasses made from zinc combined with copper, tin, lead, etc., which are used in the machinery manufacturing industry ； Zinc is combined with aluminum, magnesium, copper, and others to form die-casting alloys, which are used to manufacture various precision castings. Galvanizing the surfaces of steel and various types of cast iron prevents corrosion. Zinc-containing coating materials and various anti-corrosion materials are widely used. Zinc processed products are the main materials used in the manufacture of dry batteries. Zinc compounds, such as zinc oxide and lithopone, are essential raw materials in industries such as medicine, rubber, pigments, and paints. According to the United States Geological Survey, as of 2004, the world’s proven zinc reserves (in terms of metal content, the same below) amounted to 220 million tons, while the reserve base was 460 million tons. The static reserve life for these proven reserves and the reserve base is 23 years and 50 years respectively. China has relatively abundant zinc reserves in the world; its reserves are on par with those of Australia and the United States, placing it in the top group. However, its per capita possession is below the world average. Currently, China is the world’s largest producer and consumer of refined zinc; in 2005, its production and consumption accounted for 27.4% and 30.1% of the global total, respectively.