Silver Prices Continue to Fluctuate at Highs, Downstream Demand Remains Cautious with Ongoing Wait-and-See Approach [SMM Daily Review]

Silver prices continued to fluctuate at highs today, with the spot-futures price spread between the SHFE silver 2510 contract and TD around 20 yuan/kg. The fear of high prices in the spot market has not dissipated. In Shanghai, large silver ingot suppliers quoted a premium of 4-5 yuan/kg against TD but found almost no interest, while some national standard warrant holders made a few transactions at a premium of 2 yuan/kg against TD. Additionally, due to cost constraints, some suppliers were reluctant to sell at a discount of 15 yuan/kg against the SHFE silver 2510 contract. Furthermore, a smelter in Henan province quoted a discount of 2 yuan/kg against TD, and a smelter in Guangdong province quoted a discount of 20 yuan/kg against the SHFE silver 2510 contract. Some smelters, due to the fulfillment of processing trade export contracts, suspended domestic supply this week, leading to a decline in both supply and demand in the spot market. Downstream buyers maintained just-in-time procurement and cautiously observed the market, resulting in generally weak overall trading.