HONG KONG, May 14: Increased domestic hedging and strong local prices are discouraging Chinese smelters and merchants from exporting spot refined zinc, which may drive exports down by 8 per cent this year, analysts and industry officials said on Monday.

China is expected to export less than 300,000 tons of refined zinc this year, of which some 153,000 tons were already exported in the first quarter.

Lower outflow from China, one of the major exporters in international markets, could drive up world prices.World zinc prices rose 25 per cent in the last two months to $4,020 a ton on Monday, but the price is still 12 per cent off the record of $4,580 last November.—Reuters