[SMM Analysis] High Silver Prices in February Support an Increase in Silver Ingot Production

Silver production in February increased by 2.4% MoM and 15.4% YoY. Fourteen companies reported increased production, primarily due to the following reasons: 1. Resumption of operations. 2. Some companies raised their production targets this year, leading to higher monthly supply. To meet production needs, raw materials were procured. In February, as the average silver price was relatively high, raw material suppliers were more motivated to sell, making procurement easier and boosting production. 3. The relatively high silver price in February encouraged active market sales, which in turn stimulated corresponding raw material production. Eleven companies reported decreased production, mainly due to the following reasons: 1. Fewer production days in February compared to January. 2. Fluctuations in raw materials. Since the number of companies and the volume of increased production exceeded those of decreased production, February saw a notable increase in silver production compared to January. As the market predicts that silver prices will remain at a relatively high level in 2025, some smelters have increased their production plans for 2025 to ensure profitability. Additionally, some companies are planning to ramp up production in March, so March production is expected to continue rising.

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