Spot Market and Domestic Inventory Brief Review (January 15, 2026) [SMM Silver Market Weekly Review]

This week, precious metals prices surged significantly. The weekly average price of SMM #1 silver delivery broke through a new high of 22,000 yuan/kg. However, market circulation supply remained tight, and transactions in the spot market were mainly concluded with large spot premiums. Approaching the weekend (January 14-15), spot premiums over TD in the Shanghai spot market dropped to 120-150 yuan/kg. Some suppliers mentioned that the price surge beyond expectations led to substantial margin call requirements, prompting them to sell spot cargo at premiums below the market average to recoup funds. Investment demand in Shenzhen continued to pull back WoW, with actual transactions in the Shenzhen market remaining thin. A few suppliers sold small quantities at TD premiums of 100-120 yuan/kg. This week, news that PV industry export tax rebates are expected to be canceled in early April boosted a new wave of export rush order demand. Downstream silver nitrate and silver powder enterprises showed improved stockpiling enthusiasm matching pending delivery orders. The spot market was dominated by rigid end-user stockpiling needs. Despite high fluctuations in silver prices and premiums, industrial rigid demand supported moderate spot market transactions.
Inventory side, social inventory of silver continued its downward trend this week. Cargo pick-up in the spot market was still concentrated in Shanghai warehouses. Investment demand in Shenzhen weakened, and market traders generally adopted a wait-and-see stance. Price volatility risks stemming from the low inventory environment persisted.