Silver Prices Plunge Sharply, Suppliers Hold Back and Wait; Spot Market Premiums Soar Over 3,500 Yuan/kg [SMM Daily Review]

Today, precious metals prices retreated significantly, and sellers were reluctant to sell. In the Shanghai market, some suppliers offered TD premiums of 3,500-3,800 yuan/mt or premiums of 3,000 yuan/kg against the SHFE silver 2604 contract in the morning session. Downstream buyers only made just-in-time procurement in small quantities. Although TD premiums of 3,800-4,000 yuan/mt or even higher were still seen in the market, sellers mainly held prices firm and were reluctant to sell, making actual transactions difficult. Today, smelters reduced their offers, and spot cargo supply in the spot market remained tight. Despite the sharp decline in futures, neither the Shanghai nor the Shenzhen market saw lower premiums for sales. Suppliers held back goods in anticipation of price increases, while some downstream producers took early holidays due to difficulties in raw material procurement and the approaching Chinese New Year holiday. Investment demand and traders' willingness to purchase were weak, leading to thin trading in the spot market today.