Gold's Strength Boosts Silver Prices to New Highs, Downstream Continues to Fear High Prices with Thin Trading [SMM Daily Review]

Silver prices hit a new high again today, with the spot-futures price spread for SHFE silver 2510 contract expanding to 25-30 yuan/kg. Fear of high prices in the spot market has not dissipated. In Shanghai, suppliers of national standard silver ingots offered a premium of 4-5 yuan/kg against TD, with limited transactions concluded. A few suppliers held back from selling and adopted a wait-and-see attitude, offering a discount of 10-15 yuan/kg against the SHFE silver 2510 contract. In Henan, a smelter maintained a discount of 2 yuan/kg against TD for ex-factory offers. It is understood that due to the sharp rise in silver prices and the widening spot-futures price spread, many suppliers mentioned that they suspended offers as they were unable to lower the premium due to costs and capital occupation. Downstream users only made just-in-time procurement in small quantities, resulting in relatively tight supply of circulating spot cargo and overall sluggish transactions.