Zinc-Shanghai ratio refers to the ratio of Shanghai stock price to London stock price, which is usually based on the latest price of Shanghai 3-month futures /LME3-month futures.

This value reflects the import profit and loss. When the Shanghai index reaches a certain level, the import benefits will be greater, which will stimulate imports, and then the Shanghai index will return.

The Shanghai index is low to a certain extent, the import is unprofitable, the import is reduced, the domestic inventory is consumed to a certain extent, and the supply is insufficient, which stimulates the price to rise, and the Shanghai index rises again. This cycle.