Multiple Macro Disturbances Drove Wild Swings in Silver Prices, Spot Discounts and Sluggish Trading Persisted [SMM Daily Review]

Today, SMM's premium quotations for the SGE Ag(T+D) ranged from TD-40 to parity, with an average of -20 yuan/kg.

On the macro front, the silver market experienced wild swings in the short term, influenced by factors including Peru's energy crisis, rising US inflation pressure, India's increased import duties on gold and silver, and geopolitical uncertainties.

Spot market side, market demand continued to weaken, suppliers were not active in offering, and overall trading was sluggish, with the price spread between high and low offers widening. In the Shanghai morning session, mainstream quotations from suppliers of national-standard silver ingots were quoted at premiums of -30 to parity against TD. The market had been sluggish for several consecutive days, supplier confidence was weak, and prices of some national-standard products moved lower. In the Shenzhen area, non-delivery brands maintained larger discounts, with transaction discounts leaning toward the lower end of quotations. Overall, the spot market today continued its weak trend, with both buyers and sellers inactive in trading.