Long-End U.S. Treasury Yields Pulled Back, Platinum Prices Surged, Spot Market Trading Remained Sluggish [SMM Daily Review]

Platinum futures surged in the daytime session today, as the U.S. Treasury expanded its long-term Treasury bond repurchase operations, causing long-end Treasury yields to pull back. The overall valuation of precious metals rose, and platinum, being more elastic than gold, saw amplified gains. In the early session, the most-traded platinum contract PT2610 on GFEX closed at 443.15 yuan/g, up 4.52%; the price spread between the SGE Platinum 9995 ask price and the GFEX PT2610 contract remained around 3 yuan/g.

In the spot market, mainstream quotations for platinum were at a discount of 3.5-2.5 yuan/g against the PT2610 contract. The discount in supplier quotations widened compared to the previous trading day. As futures rose, some deeply discounted cargoes emerged, making transactions at the high end of mainstream quotations very difficult. Additionally, downstream enterprises had limited purchase willingness and mostly made just-in-time procurement based on orders, while warrant premiums for platinum warehouses were elevated, so mainstream quotations were mostly at a discount of 2.5-2 yuan/g against the most-traded contract. Overall, spot platinum market trading remained sluggish.