SHFE/LME Price Ratio Pulled Back and Fluctuated Below 7.2 [SMM Weekly Review of the SHFE/LME Zinc Price Ratio]

Published: Apr 3, 2026 15:23

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[SHFE/LME Price Ratio Pulled Back to Fluctuate Below 7.2]: This week, the SHFE/LME price ratio pulled back to fluctuate around 7.2, and the zinc ingot import window remained closed. Outside China, Powell released a dovish signal that long-term inflation expectations remained anchored, while LME Cash-3M shifted into a backwardation structure. Inventories outside China remained at low levels, cancelled warrants increased sharply, and LME zinc surged. On Friday, the LME zinc market was closed for a holiday.

SMM News on April 3: This week, the SHFE/LME price ratio pulled back and fluctuated around 7.2, and the zinc ingot import window remained closed. Outside China, Powell released a dovish signal that long-term inflation expectations remained anchored, while LME Cash-3M shifted into a backwardation structure. Inventories outside China remained at low levels, cancelled warrants increased sharply, and LME zinc was pushed higher. On Friday, the LME zinc market was closed for the holiday. In China, market sentiment improved somewhat amid rising expectations for easing tensions in the Middle East. Coupled with gains in LME, SHFE zinc edged higher. Social inventory turned to accumulation, putting pressure on zinc prices, and the center of SHFE zinc was capped. Overall, the SHFE/LME price ratio declined. It is expected that next week, the SHFE/LME price ratio will mainly fluctuate rangebound.

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.

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