SHANGHAI, Mar 9 (SMM) – According to SMM survey, domestic #1 silver output stood at 1,293.802 mt (silver output produced with ore stood at 1,163.802 mt) in February 2023, up 2.6% on the month and 17% year on year. The significant year on year growth is because producers halted production for CNY holidays in February 2022, while the 2023 CNY holiday came earlier in January.

Silver producers suspended production in January for CNY holidays and maintained production after CNY holidays throughout the month. Besides, some plants suspended production for maintenance, and resumed production in February.

The output at some plants declined in February due to fewer calendar days and production schedules.

SMM expects the output to rise slightly in March.

On the macro side, the number of initial jobless claims in the United States for the week ending February 24 was 190,000, lower than the previous reading of 192,000, and the expected figure of 195,000.According to Federal Reserve Chairman Powell’s speech on March 7 US time, the latest economic data topped expectations, and the Fed may raise interest rates in the future more than previously expected.

If the overall data show that the pace of tightening needs to be accelerated, the Fed will accelerate the pace of interest rate hikes in the future, having a negative impact on the market.

Notes: SMM has released Chinese silver output since February 2021.

Silver is mostly associated with copper-lead-zinc mines. Thanks to high coverage of the base metals industry, SMM has undertaken a survey of 45 silver manufacturers, which are located in 17 provinces across China, with a total capacity of nearly 24,000 mt and a total capacity coverage rate of over 99%.