[SMM Analysis] January Silver Nitrate Production Down 15% MoM

Silver nitrate production in January showed a downward trend, down 15% MoM and 36% YoY. This year, the Chinese New Year break started earlier than last year, so the holiday began in January. PV-related companies had a basic production period of 2-3 weeks this month. Due to a slight decline in silver prices in mid-January, combined with raw material restocking and demand fluctuations driven by downstream orders, production time and output this month exceeded expectations. Most companies' production departments began their holidays this week, while administrative and sales departments started slightly later. Some companies adhered to statutory holidays, but due to logistics issues, the market began to gradually enter the holiday state after completing related wrap-up activities this week. Meanwhile, January's silver nitrate production saw a significant YoY decline. There were two main reasons: 1. In January last year, silver prices were at 5,000-6,000 yuan/kg. Low silver prices, coupled with robust downstream demand, brought producers a large number of orders, leading some companies to shorten their Chinese New Year break to meet production needs. 2. January last year was unaffected by the Chinese New Year, resulting in a full production schedule without holiday disruptions.

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