Today, SMM's 10:00 AM price for the SGE Ag (T+D) was 14,594 yuan/kg, with premiums quoted in the range of TD0 to +10 yuan/kg and a weighted average price of 3.3 yuan/kg; against the most-traded SHFE 2612 contract, it was at a discount of 55-45 yuan/kg.
On the macro front, spot gold closed up 1.47% at $4,194.45/oz, and spot silver closed up 2.78% at $60.81/oz, with silver continuing to show greater elasticity than gold. The US Treasury eased sanctions on Russia, allowing imports of Russian diesel until April next year; Russia agreed to supply 300,000 mt of diesel to the US and global markets in October, 500,000 mt in November, and 1 million mt in December, with possible additional volumes. The three major US stock indices closed higher last Friday, Hong Kong stocks opened higher and moved higher, gold and precious metals concept stocks remained strong all day, and the precious metals sector saw notable capital inflows. Today, gold and silver extended their technical rebound.
In the spot market, after the silver price rebound, downstream fear of high prices was strong, and combined with relatively sufficient pre-holiday stockpiling, overall purchase sentiment was subdued, with most buyers inclined to negotiate prices. As traders generally purchased to replenish inventory last week, offers were relatively firm today. In the Shanghai region, morning trader offers were concentrated at a discount of 45 yuan/kg against the most-traded SHFE 2612 contract, while smelter ex-works offers were mostly at parity, with limited transactions and overall trading activity weakening.
Overall, silver prices rebounded but spot prices struggled to catch up, with downstream fear of high prices and sufficient pre-holiday stockpiling jointly suppressing purchase willingness, and trading turning quieter.
