SHANGHAI, Jun 9(SMM) -
According to SMM research, the domestic silver nitrate output in May stood at 595 mt amid the seasonal high, an increase of 19% on the month, mainly due to the increase in downstream demand.
In May, the domestic silver nitrate manufacturers almost produced at full capacity. The main reason for the sharp increase in demand for silver nitrate this month was that the pandemic affected the transportation speed of imported silver powder, while the prices of imported silver powder remained high, leading to less imports of silver powder. Domestic silver paste manufacturers gradually increased the purchases of domestic silver powder, which boosted the domestic demand, and silver powder manufacturers restocked from the upstream, driving up the demand for silver nitrate.
In addition, for other producers who have demand for silver nitrate except silver powder, the prices of silver nitrate maintained at a low level. The prices of silver nitrate except for silver powder were more acceptable for other downstream enterprises, and downstream enterprises restocked actively amid seasonal high.
Although the silver prices were low in May, the silver spot was not able to fill the market due to the pandemic in Shanghai, leading to tight silver spot in the market and driving up the spot premiums.
Some silver nitrate manufacturers reduced inventory considering the costs and delivery pressure amid increasing demand and the spot premiums of silver. Some manufacturers also extended the delivery date amid the rising orders.
In June, some silver nitrate manufacturers had orders for silver nitrate in May, and since June 1, Shanghai has fully resumed normal production and work. The downstream manufacturers were optimistic about the demand with bullish sentiment in the market.
Therefore, SMM expects that output of silver nitrate will rise slightly in June.
