Silver Prices Fluctuated and Consolidated, with Widening Disparities in Market Trading Activity [SMM Daily Review]

Silver prices fluctuated within a range. Today, the spot-futures price spread between TD and the most-traded SHFE silver contract continued to narrow, and spot premiums extended their pullback trend. In Shanghai, suppliers of national-standard silver ingots lowered their premiums against TD to 900 yuan/kg. Some major-brand products were quoted at premiums of 900-1,000 yuan/kg against TD, or at a premium of 550 yuan/kg against the SHFE silver 2604 contract. In some regions, smelters sold small volumes of cargoes self-picked up from production site at premiums of 800-900 yuan/kg against TD to raise cash. Downstream buyers actively negotiated prices, but suppliers differed significantly in their willingness to cut quotes. As a result, the price range of premiums for silver ingots in actual transactions widened. Some downstream buyers lowered their target purchase prices to a premium of 800 yuan/kg against TD, but suppliers, due to costs and other factors, held prices firm and were reluctant to sell, accepting only slight bargaining or completing deals when the spot-futures price spread narrowed. Cases of sharply cutting premiums to facilitate transactions were limited. After silver prices weakened in the afternoon, downstream enterprises became more active in pricing on dips and continuing negotiations, and market trading was moderate.