SMM’s 10:00 pricing for SGEX Ag (T+D) was 16,003 yuan/kg today, with premiums quoted in a range of TD-10 to +5 yuan/kg and an average of -2.5 yuan/kg.
On the macro front, Trump clearly stated that he would not seek to extend the memorandum of understanding with Iran; Iran set a deadline and threatened a full-scale attack, sharply increasing transit risks in the Strait of Hormuz. The 30-year US Treasury yield rose to 5.31%, a 19-year high, while the 10-year stood at 4.73%, exerting some pressure on precious metals. Gold and silver extended their gains on Monday; this week, attention could be paid to the US Fed meeting minutes and US economic data such as ADP and industrial output for guidance.
Spot market, the market continued yesterday’s sluggish trend today, with transaction premiums moving further lower. Suppliers were relatively cautious in their offers; some discounted cargo moved quickly, and some suppliers opted for delivery or exports. Demand was mainly driven by some rigid demand via acceptance bills, with overall buying momentum insufficient. In Shanghai, morning quotes were mainly in the range of TD-5 to +10 yuan/kg. With silver prices staying high, downstream wait-and-see sentiment was strong. In Shenzhen, some GB-standard cargo was mostly quoted around slight discounts to parity. Today, premiums against the SHFE the most-traded contract 2610 were quoted at a discount of 65-55 yuan/kg.
Overall, silver prices consolidated at highs today, with the news flow lacking further upward momentum; prices were expected to continue to consolidate at highs in the short term. Spot market, the rise in silver prices continued to suppress follow-on demand, and transactions tended toward slight discounts.
