Silver Prices Under Pressure with Center Shifting Downward, Month-End Spot Supply and Demand Both Weak [SMM Daily Review]

Today, SMM's 10:00 AM pricing for SGE Ag(T+D) was 17,701 yuan/kg, with premiums quoted at TD -30 to 0 yuan/kg, averaging -15 yuan/kg.

On the macro front, escalating US-Iran tensions dampened peace talk expectations, and combined with a rising US dollar index, precious metals prices came under pressure and declined.

Spot market, mainstream quotations from national-standard silver ingot suppliers were quoted at premiums of -20 to 0 yuan/kg against TD. Approaching month-end, the market overall exhibited a supply-demand double-weakness pattern. Early morning quotations in Shanghai were mainly concentrated in the TD -20 to -10 yuan/kg range. Affected by month-end factors, some suppliers did not participate in offering due to invoice issues; meanwhile, some downstream enterprises, lacking tax invoice input credit allowances, could accept small quantities at higher premiums. The overall consumer market remained sluggish, with downstream buyers still primarily engaging in negotiated transactions. Non-delivery brand discounts in other regions narrowed somewhat, with limited circulation of low-priced supplies in the market.

Overall, silver prices were under pressure today, spot market inventory continued to be cleared with fewer market offers, and coupled with persistently weak consumption-side support, overall market transactions remained sluggish.