Silver Prices Moved Sideways, Spot Discounts Held Steady [SMM Daily Review]

Today, SMM's 10:00 AM reference price for SGE Ag(T+D) was 18,032 yuan/kg, with premiums ranging from TD-20 to 0 yuan/kg and an average of -10 yuan/kg.

On the macro front, Iran's suspension of negotiations with the US put precious metals under pressure, though the situation remained uncertain. The US May ISM Manufacturing PMI rose to 54, hitting a three-year high, with economic data being bearish; the market expected approximately a 51.8% probability of a US Fed rate hike within the year, and precious metals futures edged lower yesterday.

Spot market, yesterday afternoon transactions of national-standard silver ingots were mostly concentrated in the TD-15 to -10 yuan/kg range. At the beginning of the month, there were more sellers in the market, which boosted buyer bargaining sentiment. In Shanghai, early morning quotes were mainly concentrated around TD-15 to 0 yuan/kg, with overall offers continuing yesterday's slight discount pattern, though downstream feedback was mediocre. In other regions, non-delivery brand quotes were concentrated at -20 yuan/kg, with overall consumption enthusiasm remaining low. The transaction price center today is expected to lean toward the lower end.

Overall, macro uncertainties were significant at the beginning of the month, with market sentiment swinging back and forth. In the short term, close attention should be paid to the progress of US-Iran negotiations. The spot market maintained slight discounts, and further transaction price guidance is needed to determine the direction going forward.