Bullish Sentiment on Silver Continues to Ferment, Spot Demand Premiums Fluctuate [SMM Analysis]

Published: Oct 21, 2024 11:45

Save

SMM, Oct 21: Last week, the silver market was strongly influenced by macro sentiment and capital flows.

SMM, Oct 21: Last week, the silver market was strongly influenced by macro sentiment and capital flows. The reasons for the relatively active capital, besides the RRR cuts and active market funds, include geopolitical tensions in regions such as Korea and Israel-Palestine, which injected strong sentiment into the market's safe-haven demand, continuously and steadily boosting gold. The gold-silver ratio boosted silver prices; market expectations for the future US elections also supported the upward trend in silver prices. On Friday night, silver T+D reached a peak of 8,166 yuan per kilogram, while spot silver reached $33.751 per ounce.

[Economic Data]:
Bearish: The number of initial jobless claims in the US for the week ending October 12 was 241,000, lower than the previous value and the expected value of 260,000; the US retail sales month-on-month for September was 0.4%, lower than the previous value of 0.1% and the expected value of 0.3%.
Minor Impact: The European Central Bank deposit facility rate for October 17 was 3.25%, down 2.5% from the previous value and in line with the expected value.

[Spot Silver Ingots]:
Last week, the spot market for silver ingots showed a downward trend in premiums. At the beginning of the week, the market mostly quoted and traded national standard spot and warehouse warrants against the December contract. It is understood that this may be related to the significant deviation between the market's expected and actual values of the deferred fee direction, and changes in the spot-futures price spread also influenced market choices. Therefore, the market mostly quoted futures prices last week. As prices rose, the spot market volume was relatively ample, and the premiums for silver ingots began to gradually decline last week. The spot market for silver ingots was relatively ample, with supply exceeding demand, and many companies were selling. It was difficult for premiums to rise or remain stable. Market quotes were still at a premium, but transactions were significantly lower than the quoted prices.

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

58 mins ago

Silicon metal prices remain weak due to expectations for polysilicon production cuts, while high-purity quartz sand prices hold steady [SMM Silicon-based PV Morning Meeting Summary]

[SMM Silicon-Based PV Morning Meeting Summary] Silicon metal: Silicon metal prices have been trending weak recently, mainly affected by expectations for polysilicon production cuts in Q4. As one of the major downstream consumers of silicon metal, polysilicon's operating rate directly influences changes in silicon metal demand. This has had a strong impact on market sentiment, and with no new bullish news recently, prices are expected to consolidate on a subdued note in the near term. Polysilicon: Quotes for N-type recharging polysilicon stand at 39-42.7 yuan/kg. Manufacturers' quotes are currently relatively stable, with very few market transactions. The production cut meeting has led some manufacturers to expect a slight upward shift in the price center, but downstream acceptance remains limited.

58 mins ago

19 hours ago

[Solar: Germany’s Enerparc AG enters preliminary insolvency proceedings]

According to SMM and publicly available information, the Hamburg Local Court has recently opened preliminary insolvency proceedings for German solar developer and operator Enerparc AG and appointed a preliminary insolvency administrator. The proceedings currently apply only to the parent company, while its subsidiaries and project companies remain outside the scope. Founded in 2008, Enerparc is active across solar project development, EPC, O&M, power sales and energy storage. To date, it has developed around 6.6GW of solar projects, with approximately 5.5GW installed and 3.8GW grid-connected, while owning and operating more than 500 power plants. SMM believes the case partly reflects growing pressure on European solar developers from negative power prices, grid congestion and longer project cash-conversion cycles, and may affect module delivery and shipment schedules for some projects. SMM will continue to monitor further developments.

19 hours ago

20 hours ago

[SMM PV News]

Recently, driven by rising prices of crude oil, ethylene, and vinyl acetate, EVA production costs have increased further, and the market still holds expectations for continued EVA price increases. This week, film manufacturers and module manufacturers began the second round of price negotiations. It is expected that film prices are likely to rise in this round, but the specific increase will still depend on subsequent negotiations and actual implementation.

20 hours ago