The SHFE/LME zinc price ratio consolidated at lows near 6.8 [SMM SHFE/LME Zinc Price Ratio Weekly Review]

Published: Aug 7, 2026 14:29

Save

[SHFE/LME Price Ratio Consolidates Around 6.8]: This week, the SHFE/LME price ratio pulled back to consolidate around 6.8, with the zinc ingot import window remaining closed. Outside China, the US ADP employment data fell short of expectations, while the US dollar index and US Treasury yields consolidated. LME inventory dropped below 100,000 mt, and the cash-to-three-month backwardation structure held at a high of around $60/mt, extending the tightness in the spot market outside China, driving LME zinc to a multi-year high.

SMM, August 7: This week, the SHFE/LME zinc price ratio pulled back to around 6.8 and consolidated, keeping the zinc ingot import window shut. Outside China, US ADP employment data came in below expectations. The US dollar index and US Treasury yields consolidated. LME inventory fell below 100,000 mt. The cash-to-three-month backwardation structure held high at around $60/mt. The tightness in spot supply outside China persisted. LME zinc surged to a multi-year high. In China, ore supply tightness remained, with TCs at historical lows. Some mine shutdowns further tightened raw material supply. Meanwhile, the SHFE/LME zinc price ratio stayed low, strengthening export expectations for China's zinc ingots, which provided support for SHFE zinc and pushed it higher. Overall, the SHFE/LME zinc price ratio is expected to consolidate at lows. Next week, attention will remain on inventory changes in China and the realization of actual exports.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 min ago

Data: SHFE, DCE market movement (Aug 07)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 07 Aug , 2026

1 min ago

21 mins ago

Nandan Zhenghua Nonferrous Metals Company Invites You to the 2026 SMM Lead & Zinc Annual Conference

21 mins ago

42 mins ago

Luca Mining intersects long lead-zinc polymetallic intervals at Mexico’s Campo Morado mine

Luca Mining disclosed new drill results from the Largo Norte unmined zone at its Campo Morado underground polymetallic mine in Guerrero State, Mexico. Hole CMUG-26-50 intersected about 184 metres grading 1.18 g/t gold, 72.42 g/t silver, 0.39% copper, 0.45% lead and 1.67% zinc from 3.6 metres downhole, including about 18 metres grading 2.64 g/t gold, 152.34 g/t silver, 0.53% copper, 1.05% lead and 2.52% zinc from about 12 metres. At the Naranjo unmined zone, hole CMNJ-26-02 returned 9.6 metres grading 4.05 g/t gold, 241.09 g/t silver, 0.90% copper, 1.57% lead and 2.72% zinc. Campo Morado is a producing underground mine with processing capacity of about 2,500 tonnes per day. Luca is allocating a combined US$25 million to 80,000 metres of underground and surface drilling at Campo Morado and Tahuehueto to extend known mineralization. At Campo Morado, it has completed 13,571 metres from 60 underground holes and 20,063 metres from 75 surface holes; drilling remains in progress. The company described the campaign as its first meaningful exploration program at the mine since 2014.

42 mins ago