Macro Hedging Sentiment Persists, Silver Continues High-Level Fluctuation [SMM Silver Market Weekly Review]

The US issued the latest round of tariff threats, and negotiations to end the Russia-Ukraine conflict remain contentious, intensifying market nervous sentiment. On Friday, the US dollar weakened due to a surge in Japan's inflation rate, leading to a rebound in precious metal prices. However, in the short term, the US Fed's monetary policy direction and geopolitical developments remain the main factors influencing precious metal prices. Vigilance is still required regarding escalating geopolitical risks and the safe-haven demand driven by deteriorating global economic data.

【Economic Data】 Bearish: US EIA crude oil inventory for the week ending February 14 exceeded expectations; Germany's January PPI month-on-month recorded -0.1%, below expectations. Bullish: The UK's January unemployment rate recorded 4.59%, lower than the previous value of 4.6%; France's January CPI month-on-month final value was 0.2%, exceeding expectations and the previous value. US initial jobless claims for the week ending February 15 were 21.9, higher than the previous value and expectations.

【Spot Market】

Silver: This week, the premium/discount quotes for self pick-up tonnage national standard spot silver ingots in Shanghai ranged from -1 yuan/kg to parity, with some suppliers quoting -2 yuan/kg. The premium/discount quotes for self pick-up tonnage from major manufacturers in Shanghai ranged from 2-3 yuan/kg, while the national standard premium/discount quotes in Shenzhen were 2 yuan/kg. This week, silver prices continued to fluctuate at high levels, with premium transactions relatively challenging. Market downstream enterprises gradually resumed operations, and just-in-time procurement slightly recovered.

PV: This week, the reference average price for solar cell rear-side silver paste was 5,239-5,323 yuan/kg; the reference average price for solar cell front-side finger was 7,893-8,018 yuan/kg; the reference average price for solar cell front-side busbar was 7,843-7,968 yuan/kg. This week, downstream operations slightly rebounded, with downstream primarily consuming inventory, and just-in-time procurement increased. Mid-week, silver prices briefly corrected, and downstream procurement sentiment slightly improved WoW.

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