Silver Prices Consolidate at High Levels, Spot Market Premiums Adjusted Down Again [SMM Daily Review]

Silver prices consolidated at high levels during the day, with the basis between TD and the most-traded SHFE silver 2602 contract continuing to narrow. Quotations in the spot market varied significantly. In Shanghai, mainstream quotations for national standard silver ingot suppliers against TD were slightly lowered to premiums of 5-10 yuan/kg, while some suppliers quoted at discounts of 15-20 yuan/kg against the SHFE silver 2602 contract or discounts of 5 yuan/kg against the SHFE silver 2512 contract. Large-scale silver ingot suppliers in Shanghai were reluctant to sell, quoting at discounts of 0-10 yuan/kg against the SHFE silver 2602 contract or premiums of 15 yuan/kg against TD, adopting a wait-and-see approach. Suppliers in Shenzhen reported that downstream consumption purchasing interest had not improved, with relatively ample circulating supply. Some suppliers in Shenzhen sold at parity against TD or quoted at discounts of 20-25 yuan/kg against the SHFE silver 2602 contract for sales. End-use consumption entered the off-season, industrial rigid demand declined, and buying the dip enthusiasm was weak. Additionally, some traders mentioned that as year-end approached, purchasing interest in the Hong Kong market also declined, with some silver ingot premium discounts widening to $1/oz. Trading in the spot market remained sluggish.