Today, SMM’s 10:00 am price for the SGE Ag (T+D) was 14,840 yuan/kg, with the premium/discount range quoted at parity to +10 yuan/kg against TD, and the weighted average price was 4.13 yuan/kg.
On the macro front, Williams’ September 29 speech signaled that “we can wait for more data,” and market bets on a 25bp hike at the October FOMC meeting pulled back to around 50% from roughly 70%-75% last week. Geopolitically, the US and Iran exchanged messages through Qatari mediators, with Trump saying “things will be known soon.” The Iranian proposal has been passed to the US by Qatar, and both sides are expected to continue consultations. On the supply side, the US plans to release 40 million barrels of strategic petroleum reserves via “swaps,” and outbound shipments from the Middle East are gradually resuming, driving oil prices to pull back quickly.
In the spot market, the spot-futures price spread between the most-traded SHFE silver contract and the SGE silver T+D held in the 50-60 yuan/kg range. On the last trading day before the National Day holiday, market trading was relatively sluggish, with some suppliers on holiday suspending quotes or holding prices firm with symbolic quotes, resulting in a wide price spread in market quotes. Morning quotes in Shanghai were at a discount of 60-50 yuan/kg against the most-traded SHFE 2612 contract, or at parity to a premium of 10 yuan/kg against the SGE Ag (T+D), basically flat from the previous trading day. Some downstream buyers made normal inquiries and purchases, with tonnage-level deals concentrated near parity against TD, while premium deals were mainly in small lots.
Overall, Fed officials’ remarks pushed the probability of an October rate hike lower, and combined with falling oil prices, the macro pressure on precious metals eased slightly. The silver spot market was steeped in holiday sentiment with sluggish trading, and deals were concentrated in the parity to slight premium range against the SGE Ag (T+D).
![Platinum Edges Up in Early Trading; Market Activity Sluggish on Last Trading Day Before Holiday [SMM Daily Review]](https://imgqn.smm.cn/usercenter/yhuhG20251217171735.jpg)
