Today, SMM's 10:00 a.m. price for SGE Ag (T+D) was 16,199 yuan/kg, with the premium/discount quote range at parity to +15 yuan/kg against TD, and the weighted average price at 7.35 yuan/kg. In the morning, the spot-futures price spread between SHFE and SGE T+D widened, and today's quoted price spread was relatively large.
On the macro front, the US Fed's 25 bp rate hike at the September FOMC meeting has been implemented, and the market has entered a digestion period following the hike. Long-end yields are locked in intense contention around the key 5% level, with the 10-year Treasury yield hitting an intraday high of 5.014% before pulling back slightly to 4.997%. Spot gold, after the rate hike was delivered, instead rose 0.84% to $4,378.23/oz, approaching the $4,400 mark intraday; spot silver showed greater resilience, closing up 1.62% at $66.27/oz. US-Iran interactions during this week's UN General Assembly are the key variable.
In the spot market, morning quotes in Shanghai were concentrated at a discount of 25-20 yuan/kg against the most-traded SHFE 2610 contract, with the spot-futures price spread between SHFE and SGE T+D running at 30-35 yuan/kg. Overall quotes were on the high side today, and with the widening spot-futures price spread, supplier quoting sentiment was weak, but actual transaction prices leaned toward parity. Higher silver prices dampened some demand, and suppliers reported weak transactions today.
Overall, this week's rate hike sentiment is gradually being digested, silver prices are slowly rising, silver's elasticity is higher than gold's, but the market lacks new macro directional guidance. Today's premium/discount quote against the most-traded SHFE 2610 contract was a discount of 30 to 20 yuan/kg, with transactions concentrated in the SGE Ag (T+D) parity to slight premium range.
