SMM analysis on China June silver nitrate output and July forecast

In June, the production of silver nitrate continued to decline compared to May. The production of domestic silver nitrate producers with production and sales qualifications was 720 mt in June, down 18.2% MoM but up 13.2% YoY. The main reasons for the decline in June production were the overcapacity of downstream photovoltaic companies and intensified industry competition. Additionally, in June when the H1 earnings results period approached and silver prices were not at very low levels, silver nitrate producers showed a low purchase enthusiasm in order to ensure enough cash flows, producing based only on orders.