Silver Prices Under Pressure and Volatile, Spot Parity and Slight Premium [SMM Daily Comment]

Today, SMM’s 10:00 AM price for SGE Ag (T+D) was 15,370 yuan/kg, with the premium range quoted at TD parity to +10 yuan/kg, averaging +5 yuan/kg.

On the macro front, US May CPI rose below expectations MoM. Market liquidity was siphoned by SpaceX’s listing, leading to significant macro and liquidity pressure. Precious metals are expected to remain volatile and bearish in the short term.

In the spot market, downstream inquiries remained active this week. Today, suppliers mostly quoted at TD +5 to 10 yuan/kg. In Shanghai, morning quotes were concentrated at TD parity to +10 yuan/kg, and suppliers had strong expectations to push premiums higher, but transactions tended toward the lower end with limited deals at higher premium levels. Low-priced supply in other regions was largely cleared, and market quotes hovered around parity. Downstream wait-and-see sentiment persisted, making it difficult for the market to quickly shift to higher premiums in the near term.

Overall, macro uncertainties are significant. Escalating US-Iran tensions combined with rising US bond yields weighed on precious metals. Spot market demand transmitted well, with deals generally at parity or above.