SHANGHAI, Aug 16 (SMM) –
China witnessed a substantial month-on-month growth in silver nitrate production in July. Domestic producers with sales qualifications accounted for 781 mt, representing a 22.8% increase from the previous month. Given that this surveyed output constitutes approximately 80% of the market, we infer that the total domestic production of silver nitrate in July was about 976 mt.
Every domestic silver nitrate enterprise reported an uptick in production in July. This was primarily attributed to the low and unstable silver prices at the beginning of July, influenced by the hawkish stance from the Federal Reserve, backed by robust employment data from late June. Simultaneously, market anticipation of mid-July's CPI data indicated a potential decrease in inflation. This reduced the urgency for the Fed to hike interest rates, leading to a boost in silver prices and prompting downstream businesses to buy at lower prices and place large orders with upstream providers. July's production figures include some deliveries from orders placed at the end of June when silver prices were still relatively low. This situation, coupled with the support of silver prices, led to an increase in downstream order placement, resulting in a notable month-on-month increase in silver nitrate production.
Although silver prices continue to fluctuate in August, according to SMM, there's a heightened sense of caution in the downstream market, likely due to significant stockpiling in July. Consequently, SMM anticipates that the silver nitrate production in August will remain steady.
