SHFE/LME Price Ratio Continued to Consolidate Around 6.7, Export Window Opened [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

Published: Aug 28, 2026 16:19

Save

[SHFE/LME Price Ratio Continued to Consolidate Around 6.7]: This week, the SHFE/LME price ratio continued to edge down to around 6.7, and the zinc ingot export window opened. Outside China, US-Iran negotiations stalled, and geopolitical disruptions persisted; coupled with hawkish remarks from US Fed officials and the approaching Jackson Hole symposium, base metals as a whole consolidated at highs. Fundamentals side, LME zinc inventory remained below 100,000 mt, fund concentration was high, and LME zinc was relatively strong.

SMM News on August 28: This week, the SHFE/LME price ratio continued to edge lower to around 6.7, and the zinc ingot export window opened. Outside China, US-Iran negotiations stalled, geopolitical disruptions had not faded, and coupled with hawkish remarks from US Fed officials and the approaching Jackson Hole symposium, base metals as a whole consolidated at highs; on the fundamentals side, LME inventory stayed below 100,000 mt, fund concentration was high, and LME zinc was relatively strong. In China, ore supply tightness persisted, TCs stayed low, and expectations of tight ore supply continued, but amid the off-season for consumption, downstream buyers were wary of high prices and purchased cautiously; zinc ingot social inventory stayed high, and SHFE zinc was relatively weaker than LME zinc. Overall, the SHFE/LME price ratio is expected to consolidate at lows, with attention to be paid to inventories outside China and changes in the relative strength between SHFE and LME going forward.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

Rising Zinc Prices Push Up Raw Material Costs for Zinc Oxide Producers, Triggering Price Hikes

【SMM Flash 】Driven by rising zinc prices, raw‑material costs for zinc oxide producers have moved higher. According to market sources, some manufacturers plan to raise product quotations, with price adjustments ranging from RMB 100‑300 per tonne.

1 hour ago

High Zinc Prices Dampen Die‑cast Zinc Alloy Demand

【SMM Flash】Zinc prices trended higher during the week, weighing on downstream order performance. End‑users are wary of high prices and mostly purchase only for rigid needs, putting sales pressure on die‑cast zinc alloy producers. Against the backdrop of elevated raw‑material costs, the market is concerned about the actual delivery strength of the traditional “Golden September” peak‑season consumption.

1 hour ago

Typhoon Forces Ningbo, Wenzhou to Level‑Ⅰ Emergency; Die‑cast Zinc Alloy Production Slows

【SMM Flash 】Affected by the typhoon disturbance, Ningbo and Wenzhou in Zhejiang upgraded their typhoon‑prevention emergency response to Level‑Ⅰ on the evening of the 27th. Some local die‑cast zinc alloy enterprises suspended production as a precaution. Dragged by this factor, the operating rate of die‑cast zinc alloy is expected to decline and fluctuate around 44.5% next week.

1 hour ago