[SMM Analysis] Did Silver Nitrate Production Decline in December?

In December, silver nitrate production fell 8.7% MoM and 11.4% YoY. The production changes in various regions were as follows: production in central China decreased by 12.3% MoM; in north-west China, it dropped by 13.5% MoM; in east China, it declined by 6.4% MoM; while in south China, production remained flat. From the perspective of regional production, most major silver nitrate production areas across the country experienced production cuts. The reasons include adjustments in downstream demand and unfavorable silver prices for stockpiling in December, leading to weak stockpiling demand in the market. Downstream sectors mainly consumed inventory to clear stock for year-end accounting and reduce capital occupation. As a result, in December, downstream orders were primarily based on rigid demand, and production schedules were more relaxed compared to November. Production departments faced relatively small pressure, and the urgency of downstream orders eased compared to November. With the approach of the Chinese New Year in January, downstream enterprises began preparing for holidays, resulting in limited demand recovery. Therefore, January production is expected to decline further.

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