Silver prices consolidate sideways, with strong market sentiment of wait-and-see [SMM Daily Review]

According to SMM, today the London spot silver price continued to test the key target level of $33.5/oz, with intense tug-of-war between longs and shorts. Domestic silver prices also continued to fluctuate rangebound, facing pressure at the 8,300 yuan/mt level. In Shanghai, the spot-futures price spread (TD) for cash-settled spot silver warrants of national standard remained at 3-5 yuan/kg. Some suppliers of national standard silver ingots offered discounts of 8 yuan/kg against the SHFE silver 2506 contract, or large smelters' silver ingots were quoted at discounts of 3-5 yuan/kg against the SHFE silver 2506 contract. However, due to a slight widening of the spot-futures price spread (TD) against the SHFE silver 2506 contract during the day, there was little advantage in quoting against the June SHFE silver contract, making transactions relatively difficult. As month-end approached, some suppliers, after experiencing a decline in inventory, continued to refuse to budge on prices, hoard their goods, or suspend quoting. In south China, smelters' cargoes self-picked up from production sites were quoted at discounts of 7-8 yuan/kg against the SHFE silver 2506 contract. In east China, a smelter's cargoes self-picked up from production sites were quoted at premiums of 2 yuan/kg against TD. Downstream buyers actively negotiated prices and made purchases at lower levels. As spot silver supply decreased towards month-end, and downstream silver nitrate production in June was still expected to be relatively pessimistic, both supply and demand in the silver market declined, resulting in a relatively sluggish market.

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