SHANGHAI, Aug 14 (SMM) –
As per SMM's statistics, the recorded production of Grade 1# silver in China for July 2023 stood at 1,350.304 mt, of which 992.304 mt were derived from silver mines. This marked a 1.6% decrease month-over-month, and a 2.2% decrease year-over-year. The reasons for this month-over-month reduction are as follows:
Scheduled maintenance at certain smelting factories; High silver prices resulting in a strong inclination to dispatch raw materials, with some downstream buyers rejecting these prices;
A shortage of imported high-grade silver ore, making procurement more challenging; A halt in dispatching;
Conversely, the reasons behind the increased production by some enterprises include: Completion of maintenance leading to a resumption of production; High silver prices prompting a strong willingness to dispatch raw materials, with downstream buyers agreeing to these prices and accepting the goods.
Given that the decrease in silver production by some enterprises outpaced the increase by others, overall silver production saw a month-on-month decline in July.
Due to the silver prices in July of this year exceeding those of the same period last year, the market price for silver raw materials rose correspondingly. In comparison to the previous year, downstream entities exhibited a weaker capacity to accept raw materials, leading to a year-on-year reduction in production.
Macroeconomic：
Negative indicators: The ADP Employment Report for July in the U.S. recorded 324,000 jobs, a figure that fell short of the prior count of 497,000 jobs, but surpassed the anticipated 189,000 jobs. Additionally, the U.S. unemployment rate for July was reported at 3.5%, lower than both its previous rate and the forecasted rate of 3.6%.
Positive indicators：The U.S. Non-farm Payroll figures for July, adjusted seasonally, were reported at 187,000 jobs, a number that was below both the previous figure of 209,000 jobs and the expected figure of 200,000 jobs.
Given the potency of the negative data and information, a considerable downward pressure was felt in early July.
