Silver prices jumped initially and then pulled back, with downstream buyers buying the dip and market transactions improving slightly [SMM Daily Review]

After experiencing a significant rally at the beginning of the week, overseas spot silver came under pressure and consolidated at $39.50 per ounce. Domestic silver prices also adjusted downward in tandem. Following the weakening of silver prices today, the TD-SHFE silver spot-futures price spread narrowed rapidly, with market traders adopting a cautiously optimistic stance. According to SMM, some market traders have lowered their premiums for TD quotes. Today, in the Shanghai region, the TD premium for spot silver ingots conforming to national standards, with cash payment and warrant, is quoted at 0-2 yuan/kg, or at a discount of 25-30 yuan/kg against the SHFE silver 2510 contract. The spot silver premium for large-scale smelter silver ingots against TD is 1-3 yuan/kg. As the month draws to a close, multiple smelters are closing their accounts for settlement or may only support cargo pick-up for long-term contracts, suspending spot quotes. Downstream buyers bought the dip during the day, but many remained cautious due to fears of further price declines, with market transactions slightly improving compared to the beginning of the week.