According SMM Statistics, China’s 1# silver output was 1,297.933 mt (including 962.933 mt of mineral silver), down 4.1% MoM and 7.1% YoY. The reasons for the decrease in output were changes on silver content of mineral silver and internal business of some enterprises and maintenance of some plants. In addition, silver producers planned to produce less goods in H2 after beating production targets in H1 2023, which also explained for the decrease. Moreover, silver output also dipped due to the National Day holiday and Mid-Autumn Festival, while some companies, at the same time, increased their production on changes on mineral silver output and operation resumption.
Macroeconomic aspect: The Fed paused hiking interest rate in November, marking the second time that the Fed has done so. The US ADP employment figure in October was 113,000, lower than an estimate of 150,000 and higher than the previous value of 89,000, which exerted positive impact on silver prices. Therefore, SMM expected silver prices will remain high in November. Meanwhile, silver output in November will decrease amid year-end demand sluggishness.
