14th Five-Year Plan Communique: Summary and Market Impact

[SMM Silver Weekly Review] Silver consumption has gradually picked up since June, with photovoltaic orders increasing and transactions mostly concentrated in the range of parity to a premium of RMB 10/kg. Last week's silver price drop to near-term lows attracted bargain buying from some downstream enterprises, strengthening holders' willingness to offer, and spot premiums have shown a slight firming trend this week. Overall, silver consumption in the PV sector has declined year-on-year, while non-PV industrial demand such as semiconductors and AI servers has yet to see notable growth, leaving the domestic silver market facing surplus pressure. A premium of RMB 10/kg is now considered relatively stable, with limited likelihood of returning to the high premium levels seen in Q1 this year. On the price front, silver fell continuously last week due to stronger-than-expected US non-farm data and geopolitical tensions. This week, news of a potential US-Iran memorandum of understanding has boosted sentiment, and precious metals are expected to see a modest rebound. Looking ahead to the second half of the year, further upside for precious metals remains possible amid evolving macroeconomic policies and geopolitical dynamics.