Silver Prices Retreat from Highs, Downstream Actively Negotiates Prices and Buys the Dip [SMM Daily Review]

Intraday silver prices surged and then pulled back, with the spot-futures price spread of TD-SHFE silver's most-traded 2602 contract narrowing to almost zero. Trading in the spot market was mainly conducted at large discounts. In Shanghai, suppliers of national standard silver ingots were reluctant to sell, with mainstream quotations at discounts of 10-15 yuan/kg against TD. A small amount of rigid demand transactions were concluded at discounts of 15-25 yuan/kg against the SHFE silver 2602 contract, and some suppliers accepted downstream negotiations, selling at expanded discounts of up to 35 yuan/kg against the SHFE silver 2602 contract. After silver prices weakened, downstream purchase intentions warmed significantly WoW, with active negotiations and small-scale stockpiling of spot cargo at large discounts. However, affected by factors such as sluggish end-user demand, overall trading in the spot market remained sluggish.