SMM September 5: This week, the SHFE/LME zinc price ratio pulled back to around 7.7 with fluctuations, while the zinc ingot import arbitrage window remained closed. Overseas, on the macro front, the US August ADP employment data fell short of expectations, and initial jobless claims exceeded forecasts, reinforcing expectations for US Fed interest rate cuts. Coupled with continued destocking of LME inventory, LME zinc showed strong support and fluctuated within a range. Domestically, supply remained at high levels, and the zinc ingot surplus persisted, but consumption stayed weak, leading to a downward trend in SHFE zinc's price center during the week. With LME outperforming SHFE, the SHFE/LME ratio declined. Next week, the ratio is expected to continue decreasing.
