Macro Bullish Factors Boost Silver Prices, High-Level Fluctuations Observed [SMM Silver Market Weekly Review]

The release of the 2025 government work report in China continues to boost consumption. This year's consumption subsidies amount to 300 billion yuan, higher than last year's 150 billion yuan. Regarding monetary policy, the US Fed's "third-in-command" stated that they have started considering the impact of tariffs on prices, and there is currently no need to adjust policies. Concerns over the drag on global economic growth caused by Trump's tariffs, combined with a series of disappointing US economic data, have led the market to bet on three interest rate cuts by the US Fed this year. The US dollar index weakened, providing support for precious metals.

【Economic Data】 Bearish: US EIA crude oil inventory for the week ending February 28 increased by 3.614 million barrels, exceeding expectations and the previous value.

Bullish: US February ISM Manufacturing PMI came in at 50.3, below expectations and the previous value; US February ADP employment increased by 77,000, below expectations and the previous value; US initial jobless claims for the week ending March 1 were 221,000, below expectations and the previous value.

【Spot Market】

Silver: This week, the premiums and discounts for self pick-up tonnage-grade national standard spot silver ingots in Shanghai were quoted at -3 yuan/kg to -1 yuan/kg, while large manufacturers' premiums and discounts were adjusted to -1 yuan/kg to 0 yuan/kg. In Shenzhen, the premiums and discounts for national standard silver were quoted at 0-2 yuan/kg. During the week, transactions in Shanghai were moderate, while in Shenzhen, transactions turned sluggish near the weekend. A series of economic data this week led to a downward adjustment in premiums and discounts. However, near the month-end weekend, some traders sold out their inventories and closed accounts, causing premiums and discounts for circulating supplies to rise again. This week, silver prices pulled back from high levels, and market traders' enthusiasm for buying the dip rebounded, leading to a significant improvement in market transactions compared to WoW.

PV: This week, the reference average price for solar cell rear-side silver paste was 5,179-5,282 yuan/kg; for solar cell front-side finger, it was 7,803-7,957 yuan/kg; and for solar cell front-side busbar, it was 7,753-7,907 yuan/kg. This week, silver prices pulled back, downstream buying the dip increased, but the recovery in production was limited, and overall market transactions remained sluggish.

》View SMM Precious Metals Spot Prices