Silver Prices Fluctuated and Consolidated, Downstream Purchases Were Scarce and Trading Was Thin [SMM Daily Review]

Silver prices continued their volatile consolidation trend today. As the Chinese New Year holiday approaches, downstream purchasing enthusiasm has continued to weaken, and the spread in spot market quotations has widened. In Shanghai, suppliers achieved limited rigid-demand transactions at a TD premium of 1,800-2,000 yuan/kg, but transactions at higher premiums proved relatively difficult. Some suppliers expressed concerns about pre-holiday consumption recovery and the spot-futures price spread, driven by risk aversion, they lowered the TD premium to 1,000-1,500 yuan/kg for inventory clearance ahead of the holiday. Consumption in the Shenzhen market has almost vanished, with some traders making small purchases in Shenzhen and transporting the goods to the Shanghai market to capitalize on the price difference. Market wait-and-see sentiment is strong; most downstream enterprises have completed their stockpiling and are preparing for the holiday, resulting in scarce actual purchases and thin trading.