Silver Prices Rise Continuously and Hit Highs Downstream Cautious and Wait-and-See Spot Market Trading Volume Shrinks [SMM Daily Review]

During the day, silver prices continued to hit new historical highs, with the spot-futures price spread for the most-traded SHFE silver 2602 contract slightly widening to 25-30 yuan/kg. The spot market maintained transactions at a discount. In Shanghai, mainstream quotations from suppliers of national standard silver ingots were quoted at premiums of -10~-5 yuan/kg against TD or -25~-30 yuan/kg against the SHFE silver 2602 contract, with limited rigid demand transactions. Downstream consumption remained weak, with some suppliers inclined to choose TD for delivery and adopt a wait-and-see approach, holding back sales. However, some traders, under pressure from continuously increasing margin requirements, expanded discounts to sell and complete capital turnover. After consecutive sharp rises in silver prices, downstream purchasing enthusiasm significantly declined. Suppliers in Shenzhen noted that purchasing intentions from traders in Hong Kong also weakened, leading to continued shrinking transaction volumes in the spot market.