Silver Prices Consolidated, Spot Market Premiums Softened [SMM Daily Review]

Silver prices were in the doldrums today. After the spot-futures price spread between the 2603 contract price and TD narrowed, some suppliers lowered their premium quotations to make shipments, though many still held prices firm and were reluctant to sell. In Shanghai, mainstream quotations from holders of silver ingots meeting the national standard were at premiums of 900-1,000 yuan/kg against TD in an attempt to hold prices firm, but transactions at high premiums were generally difficult. Downstream buyers actively negotiated prices, and only a small number of orders in the 100-500 kg range were concluded at high prices. Quoted and transacted prices in the spot market varied significantly, and there was also a wide divergence in on-market quotations. Suppliers holding prices firm and reluctant to sell coexisted with those, concerned about a future decline in premiums, who accepted negotiated price cuts. Premiums in the Shenzhen market declined slightly faster than in the Shanghai market. However, it was learned that although the premium prices of some non-delivery brands or unbranded silver ingots in the Shenzhen market were significantly below mainstream market quotations, product quality required strict inspection. After active price negotiations, downstream buyers bought the dip on demand, and spot market transactions were moderate.