SMM August 1 News: This week, the SHFE/LME zinc price ratio slightly rebounded and fluctuated near the 8.1 level, with the import window for zinc ingot remaining closed. Overseas, frequent disruptions from Trump's tariff issues, an unexpected rebound in the US's June core PCE inflation rate to 2.8% YoY, and nearly stagnant consumer spending have weakened expectations for US Fed interest rate cuts, causing LME zinc to pull back from highs during the week. Domestically, China's official manufacturing PMI for July remained below the 50 mark, weakening MoM, and the "rat race" competition sentiment further cooled. The decline in ferrous metals dragged SHFE zinc downward, with domestic zinc ingot inventory continuing to build up, and SHFE zinc fluctuating downward. Given the persistent situation where overseas market outperforms domestic market, the SHFE/LME zinc price ratio is in the doldrums. It is expected that next week, the SHFE/LME zinc price ratio may maintain a fluctuating trend.
