Silver Prices Rose Slightly as the Spot-Futures Price Spread Widened; Approaching Month-End, Trading in the Spot Market Remained Sluggish [SMM Daily Review]

Precious metal prices strengthened today, and the spot-futures price spread between TD and the most-traded SHFE silver contract widened slightly. As month-end approached, many suppliers still held prices firm and were reluctant to sell. In the Shanghai market, during morning trading, mainstream quotations from suppliers of standard silver ingots were at premiums of 100-120 yuan/kg against TD, or at a premium of 30 yuan/kg against the SHFE silver 2604 contract, with transactions mainly driven by just-in-time procurement. Some smelters, concerned about a decline in premiums in April, proactively lowered premiums to 70-100 yuan/kg to sell off cargoes. It was understood that market quotations varied widely among different brands of circulating cargoes. Some non-registered brand silver ingots were sold off at reduced prices or with separated goods and invoices. Downstream buyers generally stayed on the sidelines and purchased cautiously, or made only limited just-in-time procurement. Actual transactions still mainly concluded after downstream bargaining and price cuts, and sluggish market trading conditions remained unchanged.