Silver Prices Fell Then Rose, Spot Market Quotation Differences Widened [SMM Daily Review]

 Silver prices fell first and then rose yesterday. Although the TD–the most-traded SHFE silver contract spot-futures price spread narrowed sharply, with the 2603 contract approaching delivery and the price spread between the 2603 contract and TD still at 900-1,000 yuan/kg, some suppliers held prices firm and were reluctant to sell. In Shanghai, mainstream quotations from suppliers of national-standard silver ingots were quoted at premiums of 1,000-1,100 yuan/kg against TD, but large-volume deals required negotiation down to premiums of 900-1,000 yuan/kg against TD, with only a small number of small-lot trades concluded at higher premiums. In Shenzhen, mainstream quotations in the market were quoted at premiums of 900-1,000 yuan/kg against TD, and a few producers sold and concluded deals in early trading at a premium of 600 yuan/kg against the SHFE silver 2606 contract. Downstream buyers still engaged in extensive bargaining and generally bought the dip, and in the spot market, quotations and transactions still varied significantly across different trading volume sizes.