SHANGHAI, Aug 10 (SMM) - According to SMM survey, the domestic silver output stood at 1,379.6 mt (including 1,179.6 mt of mineral silver) in July, up 11.51% from the previous month. The output varied in different plants, but the production of most plants rose, which contributed to the significant increase of the total output.
On the macro front, on July 27, the US Federal Reserve announced a 75 basis-point interest rate hike, raising the target range of the federal funds rate to between 2.25% and 2.5%. This was the fourth time the Fed had raised interest rates this year and the raise of 75 basis points was also the second time in a row. The US Federal Open Market Committee issued a statement on July 27 after the conclusion of its two-day monetary policy meeting that the lingering high inflation was induced due to a supply and demand imbalance, rising energy prices and broader price pressures caused by Covid-19 pandemic. In addition, the conflict between Russia and Ukraine and related events also weighed on the inflation. The committee said it would "pay close attention to the risks of inflation" and continue to significantly reduce the size of its balance sheet. Fed Chairman Powell said at a news conference after the monetary policy meeting that the Fed planned to look for "compelling" evidence of easing inflation in the next few months and raise interest rates further. He also claimed that it might be appropriate to propose an "extraordinarily sharp rate hike" in the September meeting.
In terms of the silver production, the companies that cut the production radically in July were limited, which included Yunnan Copper, Jinlong Copper, Hongqian Nonferrous Chemicals, Baiyin Nonferrous, and Zijin Mining. At the same time, the companies that increased the production were obviously growing, such as Henan Jinli Gold Lead, Hunan Yuteng, Hunan Shuikoushan, Yanggu Xiangguang Copper, Zhejiang Hongda, Jiangxi Longtianyong, Guiyang Yinxing, and Huludao Nonferrous Metals. In addition, the increase in output was also substantially greater than the decrease, hence China's overall production of silver in July still increased steeply. It is expected that the domestic silver production will continue to grow in August.