According to SMM research and statistics, in May 2021, China's silver production was 1171.613 tons (including 975.943 tons of mineral silver). Silver production decreased by 7.19 percent month-on-month, and the overall output decreased slightly, in line with last month's expectation, that is, the national silver production in May may still remain in a stable state, with a greater possibility of fluctuation, which should be reduced as a whole. As the US index fluctuates back and forth recently, the news in the market is calmer than in the past, and the minutes of some Fed meetings are also mediocre. Apart from capital speculation on inflation, economic data are not amazing about expectations. As a result, the market volatility at home and abroad in May has slightly reduced compared with the previous period, volatility has also slowed down, and as export price spreads continue to narrow, the gradual closure of the window of export spreads is also reflected in this month's data. The decline in overall production was also partly due to a decline in the export of silver ingots. However, silver-containing materials, including anode mud, are still tight, and the competition is still fierce, so many manufacturers still stay in production and maintenance, such as Gejiu Lianxing, Chihong zinc and germanium, and so on. And some manufacturers also joined the tide of production reduction or overhaul in May, such as Xiangguang, Mengzi, Xing'an Silver and lead, and so on. There are also those that resume production, such as Yunxi, which is also the reason for the decline in production in May as a whole. One of the reasons for the widening price gap at home and abroad is also that the domestic silver supply is too large, and the bank funds that used to participate in large-scale transactions suddenly stopped buying goods, that is to say, if there were no receipt of bank funds, they should have been exported a long time ago. it's just that the bank funds did not buy goods at that time, resulting in the continuous expansion of the silver price discount, resulting in a huge price gap inside and outside. With the recent return to normal market trading, silver discount has also been restored, while manufacturers' mass production has also been curtailed. It is expected that national silver production will remain stable in June, and it is more likely that it will continue to fluctuate slightly, and the overall trend that it should decrease or increase will not be too obvious.
Explanation: SMM has announced the national silver output of SMM since February. Silver is mostly associated with copper-lead-zinc mines. Thanks to the high coverage of SMM basic metals, there are a total of 48 SMM silver production enterprises, distributed in 17 provinces across the country, with a total sample capacity of 24000 tons and a total capacity coverage of more than 95%.
