The SHFE/LME zinc price ratio pulled back to oscillate near 8.1, closing the import window for zinc ingots [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

SMM News on July 4: This week, the SHFE/LME zinc price ratio pulled back and fluctuated around 8.1, with the import window for zinc ingot remaining closed. Trump's "Big and Beautiful Bill" was passed in the Senate, and as the July 9 deadline for the suspension of trade tariffs approaches, market risk-aversion demand has risen. However, the US dollar index first fell and then rose, with LME zinc maintaining a fluctuating trend. In the US, the final ADP employment figure for June recorded a decrease of 33,000, the largest decline since March 2023, increasing market expectations for multiple interest rate cuts by the US Fed this year, and driving LME zinc prices higher. Domestically, China's final official manufacturing PMI for June was recorded at 49.7, higher than the previous month and in line with expectations, providing a certain boost to market confidence. However, downstream consumption has been generally in the doldrums recently, causing SHFE zinc to maintain a fluctuating trend. Subsequently, SHFE zinc prices fell rapidly under the influence of LME zinc, but market confidence was continuously boosted by the strong June Caixin manufacturing PMI, leading SHFE zinc prices to stop falling and rise. With the overseas market outperforming the domestic market, the SHFE/LME zinc price ratio declined. It is expected that next week, the SHFE/LME zinc price ratio may maintain a fluctuating trend.

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