Silver Prices Fell as the Spot-Futures Price Spread Narrowed; Downstream Buyers Remained Cautious and Waited on the Sidelines, While Trading in the Spot Market Softened [SMM Daily Review]

Silver prices fell today, and the spot-futures price spread continued to narrow. Although many suppliers tentatively tried to hold prices firm in early trading, the actual decline in transaction prices through negotiation was relatively large. In Shanghai, mainstream quotations from suppliers of national-standard silver ingots were tentatively quoted at premiums of 700-750 yuan/kg against TD, but there were almost no deals at such high premiums. Downstream buyers actively negotiated prices or stayed on the sidelines and purchased cautiously, and mainstream market transaction premiums quickly fell to 500-600 yuan/kg. Some suppliers also concluded a small number of deals for large ingots at premiums of 450 yuan/kg against TD. In Shenzhen, the decline in silver ingot premiums against TD remained greater than in the Shanghai market. As downstream buyers still expected spot premiums for silver ingots to continue narrowing and falling in the future, they were generally cautious about falling prices today, purchasing prudently or buying the dip after sharply negotiating prices. Suppliers remained reluctant to sell and continued to wait and see, and spot market transactions clearly turned weaker.