Spot Market and Domestic Inventory Brief Commentary (March 5, 2026) [SMM Silver Market Weekly Review]

Silver prices moved downwards after a higher opening this week. After the spot-futures price spread narrowed, spot premiums for physical silver ingots declined as expected, but the gap between suppliers’ quotes widened. There were still many large ingots traded directly in the market this week, or processed into small ingots and then re-entered the market for trading. Significant differences in transaction prices persisted for silver ingots across different brands and lot sizes. As of Thursday, Shanghai market quotes for national-standard silver ingots against TD premiums had been lowered to 850-900 yuan/kg, while major-producer ingots were quoted at 900-1,000 yuan/kg, with sellers holding prices firm and reluctant to sell. Downstream buyers actively negotiated and bought the dip. Some smelters or traders lowered prices due to concerns that premiums might continue to decline or because of cash-flow pressure, thereby facilitating transactions. After the Lantern Festival, downstream operating rates gradually increased, and market trading volumes continued to expand.
Inventory side, total social inventory of silver declined this week. As spot premiums surged sharply before the holiday, downstream participants generally did not stockpile ahead of the holiday. Therefore, after the holiday, under pressure to fulfill order deliveries, downstream silver users purchased large volumes of physical silver ingots. After SHFE deliveries were completed in February, a large amount of spot cargo also flowed out of warehouses.