SHFE/LME zinc price ratio rebounded and fluctuated near 7.6 [SMM Weekly SHFE/LME Zinc Price Ratio Review]

SMM January 9: This week, the SHFE/LME zinc price ratio rebounded to around 7.6, and the zinc ingot import window remained closed. Overseas, US ADP employment increased by 41,000 in December, geopolitical risks intensified, market liquidity increased, and precious metals drove LME zinc higher. Subsequently, market sentiment weakened as participants awaited non-farm payrolls data, and LME zinc's center shifted downward. Domestically, improved macro sentiment and rising precious and non-ferrous metal prices supported SHFE zinc. On the fundamentals, supply-side pressure eased while demand weakened, putting SHFE zinc under pressure. Overall, the SHFE/LME price ratio rose. Next week, the ratio is expected to remain stable.