SMM Oct. 31: This week, the SHFE/LME zinc price ratio continued to fluctuate around 7.3, and the import window for zinc ingots remained closed. Overseas, low LME zinc inventory supported prices, driving LME zinc higher again; subsequently, market optimism cooled. Although the US Fed cut interest rates by 25 basis points as expected, the chairman indicated uncertainty about a rate cut in December. Combined with the Busan meeting results between China and the U.S. failing to exceed market expectations, LME zinc came under pressure and declined. Domestically, the China Nonferrous Metals Industry Association (CNIA) proposed specific suggestions for "anti-involution," and the positive news once again boosted market sentiment, with SHFE zinc opening higher with a gap. However, as the meeting results were largely in line with expectations and coupled with the fundamental situation of strong supply and weak demand domestically, SHFE zinc lacked support, failed to maintain gains, and continued to decline. With LME outperforming SHFE persistently, the SHFE/LME zinc price ratio stabilized at a low level. Next week, the ratio is expected to remain stable.
