US-Iran Situation Resurged with Turmoil, Silver Again Came under Pressure, Spot Cargo Transactions Remained Sluggish [SMM Daily Review]

Today, SMM's 10:00 AM price for Ag (T+D) on the Shanghai Gold Exchange was 15,800 yuan/kg, with premiums quoted maintained at parity to +20 yuan/kg over TD and an average premium of +10 yuan/kg.

Geopolitically, over the weekend, the Iranian side stated that the US openly reneged on its commitment and failed to implement the first clause of the memorandum of understanding aimed at ending the war. Meanwhile, given Israel's continued violation of the ceasefire agreement, the Iranian military announced on Saturday the closure of the Strait of Hormuz. The uncertainty amid repeated US-Iran conflict continued to impact precious metal market trading.

Spot market, overall transactions today remained sluggish. Suppliers' quotes were relatively firm, with mainstream premiums maintained at parity to +20 yuan/kg over TD. The overall quoted premiums edged up slightly from last Friday, but actual trades still leaned towards the lower end. Morning quotes in Shanghai concentrated around parity to +20 yuan/kg over TD, with some non-deliverable silver ingot spot cargoes quoted below mainstream levels. Low-priced supply in other regions was also relatively limited. Smelters' quotes mostly hovered around parity to +10 yuan/kg. Affected by persistent silver price fluctuations, downstream purchasing sentiment was relatively cautious, with restocking driven mainly by rigid demand; the wait-and-see sentiment remained pronounced. Overall, spot market transactions extended their sluggish pattern today, with moderate trading activity.