Expectations of Wild Swings in Silver Prices Heat Up, Spot Discounts Continue with Sluggish Trading [SMM Daily Review]

Today, SMM's pricing for the SGE Ag(T+D) at 10:00 was 18,173 yuan/kg, with premiums quoted at TD-20 to 0 yuan/kg, averaging -10 yuan/kg.

On the macro front, precious metals futures fluctuated slightly in recent days. Entering June, the geopolitical stalemate in the Middle East persisted, compounded by uncertainty over the US Fed's policy path and the intensive release of key US economic data. Precious metals fundamentals showed strong bullish momentum, and wild swings were expected going forward.

Spot market, suppliers of GB-standard silver ingots posted mainstream quotations at premiums of TD-10 to parity, continuing the slight discount trend from last month. Overall shipments pressure was relatively small, and the weak supply-demand pattern remained unchanged. Morning quotations in Shanghai were mainly concentrated around TD-10 to 0 yuan/kg, with overall offers skewing toward the higher end, but downstream feedback was mediocre. In other regions, non-delivery brand quotations were concentrated at -20 yuan/kg. Low-priced supplies had limited circulation, and overall consumption enthusiasm remained subdued.

Overall, silver prices saw a slight correction after the weekend rebound, with market sentiment swinging back and forth. The spot market maintained a slight discount, and further consumption and transaction guidance were still needed going forward.