The SHFE/LME zinc price ratio drops to around 6.8 and consolidates [SMM Zinc SHFE/LME Price Ratio Weekly Review]

Published: Jul 10, 2026 14:04

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[SHFE/LME Price Ratio Drops to Around 6.8 and Consolidates]: This week, the SHFE/LME price ratio pulled back to around 6.8 and consolidated, and the zinc ingot export window opened intermittently. Outside China, expectations for US-Iran negotiations heated up, expectations for US Fed interest rate cuts improved, and, coupled with continued LME inventory destocking, LME zinc performed relatively strong.

SMM, July 10: The SHFE/LME zinc price ratio pulled back to consolidate around 6.8 this week, with the zinc ingot export window opening intermittently. Outside China, expectations for progress in US-Iran negotiations and improved expectations for US Fed interest rate cuts, coupled with continued destocking of LME inventory, led LME zinc to outperform. In China, ore supply tightness persisted, with TCs continuing to decline; however, weak off-season consumption limited SHFE zinc's gains, leaving it weaker than LME zinc overall. Affected by the divergence between stronger outside China and weaker at home, the SHFE/LME zinc price ratio pulled back further this week, with the export window opening sporadically. The SHFE/LME zinc price ratio is expected to continue consolidating at lows next week.

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