SHFE/LME price ratio rebounds and consolidates around 6.8, export window opens [SMM Zinc SHFE/LME Price Ratio Weekly Review]

Published: Sep 4, 2026 16:45

Save

[SHFE/LME price ratio rebounds to around 6.8 and consolidates]: This week, the SHFE/LME price ratio rebounded slightly from lows to around 6.8, with the zinc ingot export window still open. Outside China, the escalating Middle East conflict pushed up oil prices, the US dollar weakened, and nonferrous metals rebounded across the board. Fundamentals side, LME inventory remains low in absolute terms, the 0-3 backwardation structure holds above $130/mt, spot supply outside China is tight, and LME zinc is showing relative strength.

SMM, September 4: This week, the SHFE/LME zinc price ratio rebounded slightly from lows to around 6.8, with the zinc ingot export window remaining open. Outside China, escalating Middle East conflicts pushed oil prices higher, the US dollar weakened, and nonferrous metals rebounded across the board. Fundamentals side, LME inventory remained low in absolute terms, the 0-3 backwardation structure held above $130/mt, overseas spot supply was tight, and LME zinc outperformed. In China, ore supply tightness persisted, domestic ore TCs continued to fall, and downstream users were cautious about buying at high prices during the off-season. Weekly social inventory fell by 37,100 mt, mainly due to export-driven destocking, providing some support for SHFE zinc. Overall, the SHFE/LME zinc price ratio is expected to consolidate at lows.

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

Data: SHFE, DCE market movement (Sep 04)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 04 Sep , 2026

1 hour ago

2 hours ago

High Prices Suppress Market Demand, Die-Casting Zinc Alloy Market Performance Remains Weak [SMM Die-Casting Zinc Alloy Weekly Review]

[High prices suppress market demand, die-casting zinc alloy market performance remains subdued] This week, operating rates pulled back, mainly disrupted by extreme weather in east China, with some enterprises experiencing temporary production halts. On the end-use consumption side, constrained by high zinc prices, downstream hardware fittings enterprises showed strong fear of high prices......

2 hours ago

End-users show no highlights; zinc oxide operating rates maintain fluctuating trend [SMM Zinc Oxide Weekly Review]

[No highlights seen in end-user demand; zinc oxide operating rates maintain fluctuating trend] From the perspective of end-user orders, downstream tyre factories' overall demand remains mediocre, tyre enterprises face significant inventory pressure, and purchasing enthusiasm is insufficient. Meanwhile, affected by persistently high zinc prices, zinc oxide enterprises in the market have successively raised product quotations......

2 hours ago