Chinese demand for galvanized steel for infrastructure projects, high levels of pollution should keep zinc prices firm during 2007, despite some concern over rising net China exports, supply rise during 2H07, says Gerard Burg, minerals and energy economist at National Australia Bank. "The higher November and December export data was related to a tax issue so I don't see the same level continuing for 2007," he says. Says LME zinc's down 21% since year start mostly due to close alignment with copper. Keeps market balance in deficit for the year, while some analysts moot possible switch to surplus. LME 3-month zinc trades at $3,390/ton, down $5 on LME Tuesday PM kerb bid price.