Silver Prices Under Pressure Move Sideways, Spot Discounts Narrow Significantly [SMM Daily Review]

Today, SMM's pricing for SGE Ag(T+D) at 10:00 was 18,020 yuan/kg, with premiums ranging from TD-10 to 0 yuan/kg, averaging -5 yuan/kg.

On the macro front, the US-Iran situation fluctuated, and risk-averse sentiment subsided periodically. The market held relatively strong expectations for Friday's non-farm payrolls data, and concerns over US Fed rate hikes weighed on futures, causing silver prices to retreat after rapid rise, with short-term trends under pressure.

Spot market side, the decline in silver prices under pressure stimulated some downstream purchasing demand. Today, the discount narrowed somewhat, with national-standard silver ingot transactions mostly concentrated in the TD-10 to 0 yuan/kg range, and overall offers skewed toward higher levels. In Shanghai, early morning quotes were mainly concentrated from TD-10 yuan/kg to a slight premium, with overall offers recovering compared to yesterday, as suppliers showed limited willingness to sell at low prices. In other regions, low-priced supplies were largely cleared, discounts narrowed significantly, and non-delivery brand low-end quotes were around TD-10 yuan/kg.

Overall, macro conditions remained highly uncertain at the beginning of the month, with market sentiment swinging back and forth. Silver prices were under short-term pressure, moving sideways. In the spot market, as transactions followed through, discounts narrowed notably MoM, with market quotes gradually approaching parity.