SMM February 21 News: This week, the SHFE/LME zinc price ratio remained fluctuating around 8.3, with the zinc ingot import window closed. From the overseas market perspective, the US retail sales month-on-month rate for January 2025 recorded -0.9%, marking the largest decline since the beginning of the year, indicating weak consumption. Additionally, the Trump administration further expanded the tariff scope, proposing a 25% tariff on imported automobiles, pharmaceuticals, chips, and other products. Meanwhile, the continuous reduction in overseas zinc ingot inventory provided bottom support for LME zinc. Coupled with the release of favourable macro policies in China, LME zinc fluctuated upward, with its center shifting higher. Domestically, the National Development and Reform Commission (NDRC) expressed support for private enterprises to actively participate in the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins." Meanwhile, People's Bank of China Governor Gongsheng Pan stated that a more proactive fiscal policy and moderately loose monetary policy would be implemented. Although domestic policies released positive signals, downstream overall consumption showed no significant highlights, and zinc ingot social inventory continued to build up. SHFE zinc maintained a fluctuating trend, with its center slightly moving upward, while the SHFE/LME zinc price ratio remained stable. It is expected that next week, the SHFE/LME zinc price ratio may continue to maintain a fluctuating trend.
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