SMM May 8 update: The SHFE/LME zinc price ratio pulled back to around 6.9 this week and oscillated, with the zinc ingot import window remaining closed. Outside China, there were multiple fundamental disruptions: Peru issued an energy emergency decree, Kazakhstan's Zazzinc reduced load at its lead-zinc mine following an accident, and Peru's Cajamarquilla zinc smelter was shut down due to a fire. Tight supply sentiment intensified, and LME zinc pulled back slightly after surging to a three-year high. In China, ore supply tightness intensified further, zinc concentrate TCs continued to decline, and the supply side provided strong bottom support. However, consumption remained sluggish, and SHFE zinc moved lower after its center shifted upward. Overall, the SHFE/LME zinc price ratio pulled back. The ratio is expected to mainly oscillate next week.
