Silver Prices Consolidate, Spot Market Premiums Pull Back [SMM Daily Review]

Silver prices continued to fluctuate at highs during the day. The spot-futures price spread for the most-traded SHFE silver 2602 contract showed no significant change from the previous day, while premiums in the spot market decreased notably, making it difficult to conclude deals at high premiums. In Shanghai, mainstream quotations from suppliers of national standard silver ingots against TD were slightly lowered to premiums of 0-5 yuan/kg, with limited transactions concluded. Some traders indicated that larger transactions might require widening the discount for sales. Suppliers maintained discounts of 15-20 yuan/kg against the SHFE silver 2602 contract, but trading remained thin. In Shanghai, suppliers of large-brand silver ingots quoted discounts of 10-15 yuan/kg against the SHFE silver 2602 contract or premiums of 3-5 yuan/kg against TD, with individual suppliers selling at parity against TD. In Shenzhen, spot supply was relatively ample, with some suppliers quoting discounts of 20-25 yuan/kg against the SHFE silver 2602 contract for sales. End-use consumption weakened downstream, smelter export expectations declined, some producers concentrated on shipments, domestic social inventory shifted from decline to increase, and spot market premiums pulled back.