SHFE/LME price ratio continued to fluctuate around 7.4 [SMM Weekly Review of SHFE/LME Zinc Price Ratio]

SMM December 12: The SHFE/LME zinc price ratio hovered around 7.4 this week, and the import window for zinc ingots remained closed. Overseas, the US Fed cut interest rates by 25 basis points as expected at its December meeting, and subsequent remarks from Powell did not turn hawkish. Meanwhile, US initial jobless claims hit their highest level since March 2020, and the US dollar index fell, pushing LME zinc higher. Domestically, the Central Economic Work Conference emphasized continued implementation of more proactive fiscal policy and moderately loose monetary policy, creating a generally warm macro atmosphere. Fundamentally, TCs were in the doldrums, smelter production remained low, and supply-side support was strong, lifting the center of SHFE zinc. With the overseas market outperforming the domestic market, the SHFE/LME price ratio fluctuated. Next week, the ratio is expected to remain stable.