The SHFE/LME zinc price ratio consolidated at lows near 6.8 [SMM SHFE/LME Zinc Price Ratio Weekly Review]

Published: Aug 7, 2026 14:29

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[SHFE/LME Price Ratio Consolidates Around 6.8]: This week, the SHFE/LME price ratio pulled back to consolidate around 6.8, with the zinc ingot import window remaining closed. Outside China, the US ADP employment data fell short of expectations, while the US dollar index and US Treasury yields consolidated. LME inventory dropped below 100,000 mt, and the cash-to-three-month backwardation structure held at a high of around $60/mt, extending the tightness in the spot market outside China, driving LME zinc to a multi-year high.

SMM, August 7: This week, the SHFE/LME zinc price ratio pulled back to around 6.8 and consolidated, keeping the zinc ingot import window shut. Outside China, US ADP employment data came in below expectations. The US dollar index and US Treasury yields consolidated. LME inventory fell below 100,000 mt. The cash-to-three-month backwardation structure held high at around $60/mt. The tightness in spot supply outside China persisted. LME zinc surged to a multi-year high. In China, ore supply tightness remained, with TCs at historical lows. Some mine shutdowns further tightened raw material supply. Meanwhile, the SHFE/LME zinc price ratio stayed low, strengthening export expectations for China's zinc ingots, which provided support for SHFE zinc and pushed it higher. Overall, the SHFE/LME zinc price ratio is expected to consolidate at lows. Next week, attention will remain on inventory changes in China and the realization of actual exports.

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