SHFE/LME Price Ratio Rises and Pulls Back; Import Window Opens and Then Closes [SMM Weekly Review on SHFE/LME Price Ratio]

SMM, January 17: This week, the SHFE/LME zinc price ratio rose above 8.7 before pulling back to around 8.4. The zinc ingot import window opened and then closed. From the overseas market perspective, the market digested last Friday's news of US December non-farm payrolls significantly exceeding expectations, leading to a gradual pullback in zinc prices. Subsequently, US PPI and CPI data came in below expectations, the US dollar index pulled back, and LME zinc moved upward. Domestically, the imbalance in domestic fundamentals eased, smelters saw a rebound in processing fees, and actual end-user consumption gradually weakened. Under multiple influences, SHFE zinc prices continued to decline but later rose, driven by the overseas market. The SHFE/LME zinc price ratio increased and then pulled back. It is expected that the SHFE/LME zinc price ratio may continue to decline next week.

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