SHFE/LME price ratio rose to near 8.5, closing the import window for zinc ingots [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

Published: May 23, 2025 16:05

Save

[SHFE/LME Price Ratio Rises Near 8.5, Zinc Ingot Import Window Closes]: This week, the SHFE/LME price ratio rose near 8.5, and the zinc ingot import window closed. From an overseas perspective, Moody's downgraded the US credit rating from Aaa to Aa, and market sentiment about the economy continued to rise. Later, Bostic reiterated his preference for only one interest rate cut this year, and LME zinc declined amidst sentiment and low expectations for interest rate cuts.

SMM May 23 report: This week, the SHFE/LME zinc price ratio rose to around 8.5, closing the import window for zinc ingots. Overseas, Moody's downgraded the US credit rating from Aaa to Aa, fueling rising market concerns about the economy. Subsequently, Bostic reiterated his preference for only one interest rate cut this year, leading to a decline in LME zinc prices amid sentiment and low expectations for interest rate cuts. Domestically, zinc concentrate imports in April exceeded expectations, reaching over 490,000 mt, with some shipments from the OZ mine already arriving in China, indicating relatively loose ore resources. In June, TCs continued to rise, and destocking of social inventory still supported zinc prices. SHFE zinc prices fluctuated mainly this week. Given the domestic market outperforms overseas market scenario, the SHFE/LME zinc price ratio rebounded. It is expected that next week, the SHFE/LME zinc price ratio may fluctuate.

》Subscribe to view historical spot prices of SMM metals

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

24 mins ago

Ore Supply Tightness Intensified, SHFE Zinc Rose [SMM Zinc Morning Comment]

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2606 contract opened higher with a gap at 24,620 yuan/mt. At the beginning of the session, bulls increased open interest, and SHFE zinc quickly rose to a high of 24,820 yuan/mt before losing upward momentum and shifting its center lower to trade in a range. It finally closed up at 24,640 yuan/mt, gaining 260 yuan/mt or 1.07%. Trading volume fell to 78,623 lots, while open interest increased by 2,742 lots to 90,915 lots.

24 mins ago

26 mins ago

Mine-Side Disruptions Increase, LME Zinc Continues to Rally [SMM Morning Meeting Minutes]

[SMM Morning Meeting Minutes: Increasing Mine-Side Disruptions, LME Zinc Continues to Rally] Overnight, LME zinc opened at $3,482/mt. At the beginning of the session, LME zinc briefly dipped to a low of $3,457/mt. Subsequently, bulls increased their open interest, and LME zinc fluctuated upward throughout the session, touching a high of $3,542.5/mt near the close. It ultimately closed higher at $3,532.5/mt, up $50.5/mt, a gain of 1.45%. Trading volume increased to 15,265 lots, and open interest rose by 727 lots to 242,000 lots.

26 mins ago

13 hours ago

Kazzinc’s Zinc and Lead Plants Operating at Reduced Capacity After Ust-Kamenogorsk Blast

Kazzinc said on Tuesday that its zinc and lead plants at the Ust-Kamenogorsk metallurgical complex in eastern Kazakhstan are operating at reduced capacity following last week’s explosion. The incident occurred at Kazzinc’s zinc plant, killing three people and injuring five others. Kazzinc, Kazakhstan’s largest producer of zinc, lead and precious metals and owned by Glencore, has not disclosed the extent of the impact on output. Clean-up operations and an investigation into the incident are still ongoing.

13 hours ago