The SHFE/LME zinc price ratio continues to oscillate around 8.1, with the import window for zinc ingots closed [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

SMM July 18: The SHFE/LME zinc price ratio maintained fluctuating trend around 8.1 this week, with the zinc ingot import window remaining closed. Overseas, LME zinc inventory buildup early in the week eased supply concerns, dragging LME zinc lower. Later, better-than-expected US June retail sales data boosted market sentiment, overshadowing tariff concerns. Meanwhile, Trump again urged the US Fed to cut interest rates, pushing LME zinc higher. Domestically, anti-"rat race" competition policies continued to unfold, supporting prices through inventory logic. June's aggregate financing and credit data exceeded market expectations, with RMB loans in aggregate financing up YoY, warming macro sentiment and providing solid bottom support for zinc prices, helping SHFE zinc rebound. With LME outperforming SHFE, the SHFE/LME ratio maintained fluctuating trend. Next week, the SHFE/LME ratio is expected to maintain fluctuating trend.