The cost of zinc alloys on the metal trading markets continues to skyrocket, soon to break the US$7,000 per ton barrier. With the emerging Chinese economy come higher demands for construction materials and resulting higher costs. The 2008 Summer Olympics in Beijing have prompted unheralded new construction projects; according to China’s Ministry of Construction, China plans to start work on 4.1 billion square feet of new housing projects in 2007, with 53 billion square feet to be built with government funding by the year 2012. Government programs do not tell the whole story; private-sector construction is now on the rise.

The bottom line? Do not expect a decrease in zinc alloys (the main material used in diecast cars) cost anytime soon! The impact on this market and others will be interesting to see.