According to SMM survey statistics, the output of 1# silver in May 2024 was 1,559.333 mt (the output of silver made using ores was 1,017.333 mt), up 27.569 mt or 1.8% MoM, and up 11.4% YoY.
The average price of SMM 1# silver in April was 7,107.3 yuan/kg, and the average price of SMM 1# silver in May was 7,728.65 yuan/kg. Meanwhile, the price fluctuation range in May was larger than in April. In mid-May, LME copper price surged, driving a general rise in non-ferrous metals prices. Silver price deviated from fundamentals, with prices significantly influenced by funds and market sentiment. Silver prices saw sharp rise and fall, continuously hitting new highs. That stimulated the procurement of ore and related products by smelting enterprises. The changes in the silver content of raw materials and the rising prices boosted raw material procurement in March and April. However, enterprises mainly using silver-containing recycled materials faced financial pressure due to high silver prices in May, and there was difficulty in selling and p withdrawal of fund. They had to procure raw materials based on cash flow, with procurement sentiment inhibited. That led to a decline in output.
