SMM Analysis On China September Silver Nitrate Production And October Forecast

In September, the production of silver nitrate increased slightly. The reasons for the increase differed from August, as the market began stocking for the Mid-Autumn Festival and National Day. Although the downstream market expansion this year was not as significant as last year, to prevent the lack of raw materials in October as seen last year, all segments stocked up as expected. Additionally, in early to mid-September, the relatively low silver prices did not dampen market purchasing enthusiasm. The production of silver nitrate producers changed, with some reducing output due to holidays like the Mid-Autumn Festival and other reasons. Orders were distributed to other companies, slightly increasing the production gap compared to August.

Entering October, as the stocks from pre-holiday were not fully consumed and with extended downstream holidays and low operating rates, demand did not see a strong boost. It is expected that silver nitrate production will decrease in October.