Spot Market and Domestic Inventory Brief Review (February 12, 2026) [SMM Silver Market Weekly Review]

Silver prices consolidated this week, but spot market quotations diverged as the Chinese New Year holiday approached. Although the spot-futures price spread narrowed, physical silver ingot supply maintained a premium quotation. This week, suppliers in Shanghai quoted silver ingot prices against TD. As of Thursday, spot silver ingot prices against TD in Shanghai and Shenzhen dropped from last week's high of 3,500 yuan/kg to 1,500 yuan/kg. Some suppliers, concerned about a post-holiday pullback in premiums and the risks of holding inventory during the holiday, offered prices of 1,000-1,500 yuan/kg against TD for inventory clearance. According to reports, both supply and demand in the trade market declined this week, with quotations continuously decreasing. After pre-holiday stockpiling ended in the Shenzhen market, transaction volumes shrank rapidly, forcing some suppliers to hold inventory over the holiday. Additionally, SMM learned that as the Chinese New Year holiday neared, purchasing interest for imported silver ingots and semi-manufactured raw materials declined. Some suppliers opted to formulate import plans and demand before the holiday, scheduling physical transactions for after the holiday. Market transactions this week were primarily driven by rigid downstream demand, with deals mainly involving small volumes of spot cargo at slight premiums. Most silver nitrate enterprises had already halted procurement and quotations, resulting in thin trading activity in the spot market.
Inventory side, total social silver inventory continued its downward trend this week. In the Shenzhen market, social inventory accumulated slightly due to factors such as completed pre-holiday stockpiling leading to decreased transactions. Ahead of the Chinese New Year holiday, smelter inventory focused mainly on shipments under long-term contracts. Additionally, the total volume of traders' pre-holiday purchases transferred to social warehouses declined, and social inventory remained low.