SHFE/LME price ratio consolidates around 6.8 [SMM Zinc SHFE/LME Price Ratio Weekly Review]

SMM, September 18: This week, the SHFE/LME zinc price ratio held near 6.8, and China's zinc ingot import window remained closed. Outside China, with the rate hike now delivered, macro sentiment has largely been released. On the fundamentals side, LME zinc inventory increased but remained at a relatively low level, the LME zinc backwardation structure stayed elevated, and LME zinc rebounded from lows. In China, macro factors weighed on zinc prices, but with the National Day holiday approaching, downstream zinc enterprises engaged in significant stockpiling recently, drawing down China's zinc ingot inventory and supporting SHFE zinc's center to move higher. Overall, SHFE and LME zinc moved largely in tandem, with limited change in the SHFE/LME price ratio, which is expected to consolidate near 6.8 next week.