Silver Prices: Overseas Market Outperforms Domestic Market, Shenzhen Market Faces Undersupply [SMM Daily Review]

Today, the silver market exhibited a pattern where the overseas market outperformed the domestic market, with the spot-futures price spread for TD against the most-traded SHFE silver 2512 contract narrowing slightly to 40 yuan/kg. However, suppliers did not significantly reduce their premiums. In the Shanghai area, large suppliers' silver ingots traded in small volumes at a premium of 5-8 yuan/kg against TD or at a discount of 40-45 yuan/kg against the SHFE silver 2512 contract. Due to expectations that the Ordinary Trade export window would open, the spot market in Shenzhen experienced undersupply, causing the TD premium to surge sharply to 10-20 yuan/kg, with some suppliers' silver ingot supply flowing into the Shenzhen market. As silver prices retreated from highs today, downstream buying the dip enthusiasm increased somewhat. Traders in Shenzhen actively made purchases, leading to a slight improvement in spot market transactions.