SHFE/LME Price Ratio Rebounds, Import Window Remains Closed [SMM Weekly Review on SHFE/LME Zinc Price Ratio]

SMM February 7 News: This week, the SHFE/LME zinc price ratio rebounded and fluctuated below 8.4, while the zinc ingot import window closed. From the overseas market perspective, US December job openings fell below previous and expected values. US Fed officials believe that current consumer spending remains resilient, the labour market is solid, but inflation risks are rising, leading to a decline in LME zinc. Subsequently, LME zinc rebounded and surged, influenced by December trade balance data and the US January ISM Non-Manufacturing PMI falling short of expectations. Domestically, market sentiment was continuously affected by US tariff issues, causing SHFE zinc to decline under market uncertainty and the influence of the overseas market. Due to reduced Chinese New Year procurement and cargo pick-up, domestic inventory increased, but the inventory buildup did not meet market expectations, driving SHFE zinc further upward and pushing the SHFE/LME zinc price ratio higher. The SHFE/LME zinc price ratio is expected to maintain a fluctuating trend next week.

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