The SHFE/LME price ratio declined and oscillated near 8.0, closing the import window for zinc ingots [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

SMM reported on July 25: This week, the SHFE/LME price ratio pulled back to oscillate around 8.0, and the import window for zinc ingot remained closed. Overseas, at the beginning of the week, LME cancelled warrants surged to 59,900 mt, accounting for over half of the total, sparking market concerns over the subsequent supply-side trend. The center of LME zinc prices rose to a four-month high. Subsequently, the US reached agreements with multiple countries in trade negotiations, and Sino-US trade talks were also scheduled, leading to a pullback in market risk aversion sentiment. However, overseas inventories continued to decline, and LME zinc maintained its oscillating trend. Domestically, the overall market sentiment was relatively positive. China is set to hold economic and trade talks with the US next week. The scheduling of Sino-US negotiations bolstered macro sentiment, driving SHFE zinc prices to fluctuate at highs amid the macro sentiment. However, as domestic consumption entered the off-season, SHFE zinc prices oscillated. With the overseas market outperforming the domestic market, the SHFE/LME price ratio declined. It is expected that next week, the SHFE/LME price ratio may rise slightly.