Spot Market and Domestic Inventory Brief Review (January 29, 2026) [SMM Silver Market Weekly Review]

This week, precious metals prices surged beyond expectations. As monthly inventory clearance by state-owned enterprises approached and some traders closed their books at month-end, liquidity in the spot market remained tight. At the beginning of the week, spot market premiums over TD in Shanghai were quoted at a moderate 300-500 yuan/kg. However, as the spot-futures price spread widened towards the weekend, suppliers held back sales, quoting high premiums of 1,000 yuan/kg over TD. It was reported that in the Shenzhen market, a small amount of silver material traded at high premiums of 1,500-1,800 yuan/kg over TD, but transactions were limited. Amid the sharp rise in silver prices this week, downstream buyers maintained just-in-time procurement, while some enterprises suspended production and adopted a cautious wait-and-see approach, leading to a slight cooling in spot market transactions.
On the inventory side, social inventory of silver continued to decline this week, with some social inventories nearly depleted by mid-week and only a small amount of spot cargo replenished by the weekend. Approaching the month-end, some smelters had not yet shipped their February long-term contracts, reducing the availability of circulating spot cargo. The risks of price volatility and expectations of a short squeeze driven by the low inventory environment persisted.