Silver Prices Continued to Hold Up Well, While Downstream Buyers Significantly Negotiated Lower Premiums [SMM Daily Review]

Precious metal prices held up well today, and the spot-futures price spread between TD and the most-traded SHFE silver contract changed relatively little from yesterday, while relatively large differences in spot market quotations still persisted. In the Shanghai market, during the morning session, mainstream quotations from suppliers of standard silver ingots were at premiums of 80-100 yuan/kg against TD, or at a premium of 30 yuan/kg against the SHFE silver 2604 contract. Some suppliers held prices firm and were reluctant to sell, quoting premiums of 100-120 yuan/kg against TD, or a premium of 50 yuan/kg against the SHFE silver 2604 contract. It was understood that quotation differences among circulating cargoes of different brands remained relatively large. Downstream buyers generally made substantial counteroffers for purchases, and the actual transaction price in the delivery brand silver ingot market was lowered to premiums of 70-90 yuan/kg against TD. Circulating cargoes in the market were relatively ample, and spot transactions remained sluggish.