SHFE/LME price ratio pulls back below 6.9 and consolidates [SMM Zinc SHFE/LME Price Ratio Weekly Review]

Published: Oct 23, 2026 14:53 (GMT+8)

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[SHFE/LME price ratio pulls back to below 6.9 and consolidates]: This week, the SHFE/LME price ratio pulled back to around 6.8, with the import window remaining closed. Ex-China, US initial jobless claims fell, and with inflation expectations staying high, market expectations for US Fed interest rate cuts cooled somewhat. The US dollar held up well, weighing on LME zinc.

SMM, October 23: This week, the SHFE/LME zinc price ratio pulled back to around 6.8, with the import window remaining closed. Overseas, US initial jobless claims fell, and with inflation expectations staying high, market expectations for US Fed interest rate cuts cooled, keeping the US dollar firm and pressuring LME zinc. However, the LME Cash-3M backwardation structure held at around $40/mt, providing some support to overseas spot. Domestically, macro sentiment was weak, and SHFE zinc followed LME zinc lower, but tight ore supply, low TCs, and continued destocking of social inventory lent some support to prices. Overall, both SHFE and LME were pressured by macro sentiment, and the SHFE/LME price ratio pulled back slightly, expected to consolidate at lows in the short term.

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