SHFE/LME price ratio pulled back to around 8.4, closing the import window for zinc ingot [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

SMM News on June 6: This week, the SHFE/LME price ratio pulled back to around 8.4, and the import window for zinc ingot closed. Overseas, the "steel tariff" imposed by the Trump administration once again escalated global trade tensions. Coupled with the intensification of the Russia-Ukraine conflict, geopolitical risks rose rapidly, and market risk-averse sentiment continued to strengthen, driving up LME zinc prices. Subsequently, the US ADP employment data for May "disappointed," and LME zinc prices stabilized. Domestically, domestic inventory increased, while downstream consumption gradually weakened. In addition, due to the linkage effect between the SHFE and LME markets, SHFE zinc prices continued to decline. In this situation where the overseas market outperforms the domestic market, the SHFE/LME price ratio showed a downward trend. It is expected that next week, the SHFE/LME price ratio may fluctuate.

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