SHFE Silver Position Limits Cool Silver Frenzy, Silver Price Drops Back Slightly, Spot Market Maintains Premium Trading [SMM Daily Review]

Silver prices edged lower today. Due to exchange position limits, speculative interest in silver cooled slightly, failing to track gold's gains. In the domestic spot market, transactions were mainly concluded at premiums. In Shanghai, suppliers of large-brand silver ingots offered premiums of 120-150 yuan/kg against TD, while suppliers of national standard silver ingots reported necessary deals at premiums of 100-120 yuan/kg against TD or 150 yuan/kg against the SHFE silver 2604 contract. In Henan, a small number of deals were concluded for cargoes self-picked up from production sites at premiums of 80-100 yuan/kg against TD. In Shenzhen, suppliers' willingness to sell diminished as prices dropped, leading to either a halt in quotations or firm price holding with limited sales. Some traders in Shanghai chose to ship spot cargoes to Shenzhen. During the day, downstream users bought the dip and actively negotiated prices. High premium quotes in the spot market faced relatively difficult transactions. Some traders in Shanghai mentioned reasons such as the widening spot-futures price spread between the SHFE February and April contracts and were willing to slightly lower premiums to complete sales tasks. Spot market transactions improved slightly compared to the beginning of the week.