Silver Prices Stop Falling and Rebound, Spot Market Premiums Decline Slightly [SMM Daily Review]

Silver prices stopped falling and rebounded today, with market supply remaining relatively tight, and suppliers maintained premium quotes. In Shanghai, supplier quotes decreased, with some suppliers holding prices firm at a premium of 3,500-3,800 yuan/kg against TD, while a few suppliers, concerned about potential premium reductions, made just-in-time procurement at a premium of 2,300-2,400 yuan/kg against the 2604 contract. In South China, smelters offered cargoes self-picked up from production site at a premium of 2,400 yuan/kg against the 2604 contract, and some suppliers mentioned slightly lowering the premium against TD to 3,200 yuan/kg due to difficult transactions at high premiums. As the Chinese New Year holiday approached, except for a few factories making just-in-time procurement over concerns about delayed downstream order deliveries due to silver ingot supply, market transactions gradually slowed. Under the condition of high premiums being difficult to preserve value, traders showed very low intention to purchase and build positions. After the overheated market cooled down, procurement and stockpiling enthusiasm in Shenzhen Shuibei Market declined today, with a strong wait-and-see sentiment prevailing in the market, and overall transactions were relatively weak.