Silver Prices Held Up Well, Downstream Remained Cautious as Trading Turned Subdued [SMM Daily Review]

Precious metal prices held up well today, with the spot-futures price spread of Shanghai silver futures 2510 contract narrowing to within 25-30 yuan/kg. According to SMM, warrant prices for spot silver ingots with cash payment in Shanghai were quoted at a premium of 4-5 yuan/kg against TD or at a discount of 20 yuan/kg against Shanghai silver futures 2510 contract. However, downstream inquiries decreased, resulting in thin market transactions, with some suppliers selling small quantities at a discount of 24-26 yuan/kg against Shanghai silver futures 2510 contract. Large manufacturers quoted silver ingots at a premium of 6-8 yuan/kg against TD, with suppliers showing low willingness to sell and firm offers. As silver prices strengthened, approaching yearly highs, downstream end-users became cautious about potential declines and adopted a wait-and-see approach. With month-end account closing approaching and the spot-futures price spread narrowing, traders' enthusiasm for selling also declined, leading to weaker market transactions.