Silver Prices Surge Significantly, Breaking Historical Highs, Spot Market Investment Demand Reignites, Premiums Hard to Fall [SMM Daily Review]

Silver prices surged significantly today, leading to reluctance to sell in the domestic spot market. In Shanghai, suppliers of silver ingots from large smelters quoted a premium of 250-300 yuan/kg against TD, with some suppliers holding prices firm at a premium of 300-350 yuan/kg against TD due to reluctance to sell. In Shenzhen, market quotations varied widely, and the supply of circulating cargoes remained relatively tight. Suppliers quoted a premium of 200-300 yuan/kg against TD. Investment demand in the Shenzhen market reignited amid the sharp rise in silver prices. As the Chinese New Year approaches, some material suppliers still showed active intentions for stockpiling. In Guangdong, a small amount of cargoes self-picked up from smelters' production sites traded at a premium of 200-250 yuan/kg against the SHFE silver 2604 contract. Downstream industrial rigid demand actively negotiated prices, but according to SMM, silver nitrate operating rates have already declined. Spot market transactions during the day were mainly driven by investment demand, with silver material processing enterprises generally adopting a wait-and-see attitude. Overall, spot market trading remained relatively sluggish.