SHANGHAI, Nov 10 (SMM) - According to SMM survey, domestic silver output stood at 1,397.32 mt (including 1,194.32 mt of mineral silver) in October 2022, down 2.57% from the previous month. Manufacturers with increased silver production in October includes Henan Jinli Gold and Lead, Hunan Shuikoushan, Hechi Nanfang, Jiangxi Longtianyong, Chifeng Yuntong, and Inner Mongolia Xing'an Silver Lead. Some of them suspended the production in September and then resumed in October, while some enjoyed slightly higher sliver content in raw materials. However, more manufacturers cut their output in comparison, including Yunnan Copper, Tongling Nonferrous Metals, Shandong Zhaojin, Jinye Precious Metals, Mengzi Mining and Metallurgy, Zijin Mining, Guiyan Platinum, Shandong Fangyuan Nonferrous Metals, Jinlong Copper, etc. Altogether, the overall output was in a downward trend. SMM anticipates that silver production may increase slightly in November.
On the macro front, the US Federal Reserve announced a 75 basis-point interest rate hike on November 3, which was in line with market expectation. Afterwards, Powell made a relatively hawkish speech, which slightly suppressed silver prices. Then silver prices rebounded after US Fed officials delivered a dovish speech. On November 5, the US non-farm payroll data was released. The unemployment rate in October was 3.7%, higher than the previous reading and market estimate. After seasonal adjustment, US employers added 261,000 payrolls in October, lower than the previous reading but higher than estimate.
Notes: SMM has released Chinese silver output since February 2021. The silver is usually produced along with copper, lead and zinc. Thanks to its high coverage of the base metals industry, SMM has successfully investigated a total of 45 silver production enterprises, which are located in 17 provinces across the country, with a total capacity of 24,000 mt and a total capacity coverage rate of over 99%.
