SHFE and LME Zinc Inventories Diverged, Zinc Imports Will Surge after Import Window Reopens

Last week, the SHFE/LME zinc price ratio went up, driven by the continuous delivery of zinc ingots overseas, which resulted in supply surplus. In contrast, the current domestic inventory remains low.

SHFE zinc is expected to continue to outperform LME zinc.

The domestic supply is not extremely short, and zinc imports will surge after the opening of the import window. Therefore, the SHFE/LME zinc price ratio is expected to remain at the current level.

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