SHFE/LME zinc price ratio fluctuated near 7.4, zinc ingot exports continued to open [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

SMM November 7: This week, the SHFE/LME zinc price ratio rose to around 7.4, and the import window for zinc ingots remained closed. Overseas, the US ISM Manufacturing PMI for October recorded 48.7, contracting for the eighth consecutive month, which heightened market risk aversion. Subsequently, internal disagreements within the US Fed over interest rate cuts led the US dollar index to continue its upward trend. Under the strong US dollar, LME zinc faced pressure and declined. Later, LME inventories hit a new low for the year, supporting a continuous surge in LME zinc. Domestically, production at domestic smelters is expected to decline to some extent in November. Driven by the strong performance in the LME and the resonance of domestic macro and fundamental factors, SHFE zinc rose rapidly. However, with weak domestic consumption, SHFE zinc maintained a fluctuating trend. Amid the ongoing situation where LME outperforms SHFE, the SHFE/LME price ratio saw a slight rebound but remained at a relatively low level. Next week, the SHFE/LME zinc price ratio is expected to remain stable.