Silver Prices See a Technical Rebound on Fluctuating US-Iran Tensions, and Spot Transactions Hold at Parity [SMM Daily Review]

Today, SMM’s 10:00 a.m. fixing for the SGE Ag (T+D) was 13,835 yuan/kg, with the premium range quoted at TD-5 to +5 yuan/kg and an average of 0 yuan/kg.

On the macro front, at 4 p.m. ET on the 20th, the US military launched a new strike on Iran under the president's directive. However, Iran claimed that mediators proposed a 10-day US-Iran ceasefire to pursue resumption of the memorandum of understanding, and the Iranian foreign ministry confirmed receipt of the proposal, suggesting possible negotiations with the US based on national interests. Silver staged a technical rebound after a series of sharp declines but lacked substantial positive drivers, limiting the strength of the rebound.

Spot market side, premium quotes continued the trend of the preceding days, consumption remained sluggish, and deals were biased toward parity to small discounts. The spot-futures price spread widened slightly, and some suppliers reduced shipments. Early-morning offers in Shanghai were mainly concentrated at TD parity to +5 yuan/kg, with some rigid demand orders underpinning deals while suppliers’ willingness to sell weakened; in Shenzhen, some cargoes meeting national standards were clustered around TD-5 yuan/kg to parity, with limited disturbance from low-priced goods despite their presence. Today’s premium quotes against the SHFE 2608 contract were a discount of 30 to 20 yuan/kg and against the most-traded SHFE 2610 contract a discount of 60 to 40 yuan/kg.

Overall, the precious metals market lacked clear guidance from news, while bulls have recently been entering both domestic and overseas futures markets—market open interest changes warrant attention. Spot premiums settled near parity, and the supply-demand lull persisted.