Pre-holiday, risk-averse sentiment was strong in the precious metals market, with silver prices fluctuating rangebound [[SMM Weekly Review of Silver Market]]

This week, there were only three trading days, and silver prices fluctuated within a high range around $35/oz during the week. Positive signals emerged from the Russia-Ukraine situation, easing market risk aversion and resulting in slightly insufficient upward momentum for silver prices. During the holiday period this week, the US released important economic data such as non-farm payrolls. Precious metals may experience sharp fluctuations. Market risk aversion was strong before the holiday, and trading activity slowed down.

[Economic Data] Bullish: UK's CBI retail sales balance for April was -8, compared to the previous value of -41. Bearish: Eurozone's industrial sentiment index for April was -11.2, compared to the previous value of -10.7, and is expected to be -10.1.

[Spot Market] Silver: This week, silver prices fluctuated at highs. The spot-futures price spread between silver TD and the most-traded SHFE silver contract fluctuated significantly. As the minor holiday and month-end approached, suppliers closed their accounts early, leading to a decline in market transactions and a strong holiday atmosphere. In the Shanghai region, self pick-up tonne-grade national standard spot silver ingots were quoted at a premium of 3-5 yuan/kg against TD or a discount of 10-15 yuan/kg against the SHFE silver 2506 contract. Some suppliers, after reducing their inventory, quoted a premium of 8-10 yuan/kg against TD or a discount of 5 yuan/kg against the 2506 contract, holding back on sales and adopting a wait-and-see attitude. Recently, downstream operations have been moderate. After completing pre-holiday inventory replenishment, just-in-time procurement has decreased. Additionally, some end-user enterprises are pessimistic about PV installations in H2, and silver paste orders may show signs of weakening after the holiday.

PV: This week, the reference average price of solar cell rear-side silver paste ranged from 5,342 to 5,424 yuan/kg; the reference average price of solar cell front-side finger ranged from 8,047 to 8,171 yuan/kg; and the reference average price of solar cell front-side busbar ranged from 7,997 to 8,121 yuan/kg.

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