Last year's Institute: advocating risk Prevention & rational Investment & maintaining the smooth Operation of the Market

[SMM Flash] Platinum futures rose above USD 1,780/oz on August 19, reaching a two-month high as lower bond yields increased the appeal of non-yielding metals. Supply concerns, including potential power disruptions and maintenance bottlenecks at South African mines, continued to support prices, while the market is expected to remain in deficit. Meanwhile, the US Treasury’s expanded buyback operations helped push borrowing costs lower. On the demand side, AI and data-centre expansion are emerging as potential new sources of platinum demand, with Valterra Platinum estimating AI-related demand could increase fivefold by 2030. Rising hybrid vehicle production is also supporting near-term autocatalyst demand, although the continued growth of EV sales remains a longer-term headwind. Uncertainty over shipments through the Strait of Hormuz has meanwhile kept some industrial buyers cautious.

[SMM Silver Weekly Review: Silver Prices Saw a V-Shaped Reversal This Week, with Spot Discounts Continuing to Widen] Silver prices fell first and then rose this week. Mid-week, they plunged sharply, dragged down by a global bond sell-off and a surge in US Treasury yield; subsequently, the Treasury’s expanded buybacks triggered a sharp drop in the US dollar, and silver prices rebounded strongly to regain lost ground. Spot market discounts continued to widen, with insufficient downstream buying interest, forming a divergent pattern of “rising prices, widening discounts.” Inventory buildup totaled 53 mt, while ETF holdings edged down. In the short term, prices were expected to see wild swings; watch the US Treasury yield trend.