SHFE/LME price ratio fluctuated near 7.3, zinc ingot import window remains closed [SMM Weekly SHFE/LME Zinc Price Ratio Review]

SMM Oct. 10: This week, the SHFE/LME zinc price ratio fluctuated around 7.3, and the import window for zinc ingots remained closed. Overseas, at the beginning of the week, LME zinc briefly continued its upward trend influenced by lower-than-expected ISM data and a decline in the US dollar index. Later, boosted by the strong performance of other nonferrous metals and supported by low overseas inventory, LME zinc surged higher. Subsequently, as the US government remained in a shutdown, market uncertainty persisted, and LME zinc pulled back. Domestically, the market was closed due to the National Day holiday. After the holiday, SHFE zinc opened higher with a gap driven by gains in LME prices. However, the domestic fundamental structure of ample supply and weak demand persisted, with downstream consumption showing no significant improvement. Affected by downward pressure from loose supply, SHFE zinc moved lower. Amid continued LME outperformance relative to SHFE, the SHFE/LME price ratio stabilized at a low level, with market attention on zinc ingot export opportunities. Next week, the SHFE/LME price ratio is expected to remain stable.