SHFE/LME zinc price ratio rebounds to around 6.9 and consolidates [SMM Zinc SHFE/LME Price Ratio Weekly Review]

SMM, October 16: This week, the SHFE/LME zinc price ratio rebounded to around 6.9, with the SHFE/LME price ratio seeing some recovery. Overseas, US inflation data beat expectations, and market expectations for US Fed interest rate hikes intensified, pushing the US dollar index to its highest level since May 2025 and weighing on LME zinc. Meanwhile, LME inventory accumulated to above 150,000 mt, and the 0-3 backwardation structure narrowed, weakening overseas fundamentals. In China, falling zinc prices drove social inventory destocking, while mine-side TCs remained low and smelting margins contracted, leaving SHFE zinc relatively resilient. Overall, China outperformed ex-China, and the SHFE/LME zinc price ratio rebounded. Going forward, attention should be paid to the sustainability of domestic destocking and changes in the zinc concentrate import window.