[SMM Weekly Review] Chinese New Year Atmosphere Gradually Rises, Market Activity Weakens

This week marks the final week before the Chinese New Year break, with market transactions and activity levels weakening as the market enters the holiday period.
【Macro Information】:
In the early hours of January 24 Beijing time, Trump delivered a speech via video at the World Economic Forum Annual Meeting in Davos. The central theme of his speech was "Made in the US," with policies such as increased tariffs and two "America First" initiatives (extending soon-to-expire tax cuts and promoting lower corporate tax rates) essentially aimed at bringing manufacturing back to the US. However, building manufacturing facilities requires loans, and under the current high-interest rate environment in the US, this could dampen companies' enthusiasm for borrowing to build factories. Additionally, the risks associated with presidential re-election and policy stability also pose challenges for entrepreneurs. During the meeting, Trump also called on OPEC (Organization of the Petroleum Exporting Countries, including Saudi Arabia) to "lower oil costs," predicting that this could ease inflation and reduce interest rates, further attracting manufacturing back to the US. This information may lead to silver prices fluctuating upward.
【Spot Market】:
Silver: This week, traders were mostly wrapping up and preparing for the holiday. Market premiums and discounts for national standard silver ranged from small discounts to parity, while large manufacturers quoted premiums of 2-3 yuan per kilogram. As the Chinese New Year approaches, some clients eager to recover funds are selling at low prices, with market purchases focusing on low-priced cash transactions. Buying and selling prices diverged, and the market turned sluggish starting mid-week.
PV: This week, the reference average price for solar cell rear-side silver paste was 5,055-5,117 yuan per kilogram; the reference average price for solar cell busbar front-side silver paste was 7,595-7,669 yuan per kilogram; and the reference average price for solar cell finger front-side silver paste was 7,645-7,719 yuan per kilogram. PV companies gradually entered the holiday phase this week, completing related tasks after shipping according to logistics conditions. Some companies scheduled production to continue through the statutory holidays.
Others: This week, other industries began to see production departments gradually taking holidays, while sales and administrative departments primarily followed statutory holidays. Spot market activity weakened, and the Chinese New Year atmosphere began to emerge.

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