SHANGHAI, Oct 11 (SMM) –
High domestic silver prices led to weak buying appetites from downstream sectors in September. Domestic silver nitrate manufacturers with sales qualifications produced 733 mt in September, a month-on-month decrease of 5.7%, but a year-on-year increase of 25%. The surveyed output accounted for approximately 80% of a total domestic silver nitrate production in September at 916 mt. Silver nitrate output declined in all regions in September, mainly due to high silver prices driving buyers to restock only based on rigid demand or to digest their own inventory. In September, hyper-elevated domestic silver price narrowed gap to foreign silver prices. Meanwhile, the overly high domestic silver prices also led downstream buyers to take a prudent approach to meet rigid demand. Despite forthcoming replenishing demand for raw materials and silver producers working overtime for production, raw materials required for production had been refilled in advance. At the same time, silver producers took days off at the end of September for the Mid-Autumn Festival holiday. Under such circumstance, silver nitrate output inched lower in September. Booming demand from downstream sectors and post-holiday silver nitrate price erosions will probably push up silver nitrate production in October.
