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

SMM Oct. 17: This week, the SHFE/LME zinc price ratio continued to fluctuate around 7.3, with the import window for zinc ingots remaining closed. Overseas, the US September NFIB Small Business Optimism Index unexpectedly fell to 98.8, increasing market uncertainty and boosting risk-off sentiment. Additionally, a blowup in the US credit market further fueled risk aversion. From a fundamental perspective, overseas zinc inventories remained at low levels. Under the influence of multiple factors, LME zinc prices edged up gradually. Domestically, affected by recent tariff news, market trade concerns were significant. Coupled with the drag from LME's decline, SHFE zinc opened lower with a gap. Spot cargo performance was loose, and inventories gradually built up, exerting some pressure on zinc price increases, leading to a decline in SHFE zinc. Amid the persistent pattern of LME outperforming SHFE, the SHFE/LME price ratio stabilized at a low level. Next week, the ratio is expected to remain steady.