The SHFE/LME price ratio pulled back to around 7.9 and fluctuated, while the import window for zinc ingots remained closed. [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

SMM August 29: The SHFE/LME zinc price ratio pulled back to around 7.9 and maintained a fluctuating trend this week, with the zinc ingot import window remaining closed. Overseas, affected by recent US Fed turbulence, the LME zinc price center declined. However, as initial jobless claims were lower than expected, the labour market remained strong, and market sentiment turned positive, driving continuous rises in LME zinc. Domestically, zinc surplus expectations persisted, and social inventory kept increasing. Yet capital maintained optimistic sentiment toward macro policies, while declining LME inventory provided support, leading to a slight drop in the SHFE zinc price center. With LME outperforming SHFE, the SHFE/LME ratio remained in the doldrums. Next week, the ratio is expected to maintain its fluctuating trend.