Silver Prices Continue to Consolidate with Narrowed Basis, Spot Market Premiums Decline, and Supplier Quotation Differences Widen [SMM Daily Review]

Silver prices continued their sideways consolidation trend today. After the spot-futures price spread for the most-traded SHFE silver contract SHsil2604 narrowed, some suppliers lowered their premium quotes, though large smelters' silver ingot offers remained firm. In Shanghai, suppliers of national standard silver ingots lowered their premiums to TD to 1,400-1,500 yuan/kg, with deals done for rigid demand. Some suppliers in Shanghai and Shenzhen sold off inventory at TD premiums of 1,200-1,400 yuan/kg. Suppliers of large smelters' silver ingots were reluctant to sell, holding out for TD premiums of 1,500-1,700 yuan/kg. Smelters in Gansu, Guangdong, Henan, and other regions lowered their TD premiums to 1,500 yuan/kg, seeing limited transactions. Spot market supply increased today, with some small smelters' silver ingots and imported domestic large-ingot brands entering the market to meet demand for low-end applications and jewelry products. The premium decline in Shenzhen was slightly greater than in Shanghai. Quotations for different silver ingot brands varied significantly. Compared with yesterday, high-priced transactions were relatively more difficult, though overall market trading activity gradually warmed up.