This week, the price spread between SGE TD prices and SHFE August contract mostly ranged from 30-50 yuan/kg. As of Thursday, mainstream quotations for national-standard silver ingots in the Shanghai market maintained a slight discount against TD, with most transaction quotations widening to a discount of 40-20 yuan/kg against SGE TD, skewing toward the lower end. Downstream consumption recovered slightly following the sharp drop in silver prices at the beginning of the week, but demand quickly faded as prices rebounded subsequently, with downstream buyers generally maintaining a strong wait-and-see sentiment. A few non-delivery brands in the Shenzhen area continued to offer significant discounts, persistently impacting spot market prices in Shanghai. Some suppliers became less willing to offer quotes as spot market price discounts continued to widen, leading to a larger price spread between high and low quotations, and the overall spot market remained sluggish. Inventory side, the decline in silver prices did not significantly boost downstream consumption. Some downstream enterprises bought the dip to replenish safety inventory levels before quickly resuming a wait-and-see stance, and social inventory of silver ingots in Shanghai and Shenzhen continued to accumulate slightly.
