SMM

In August, silver nitrate production increased slightly. The main reason was an unexpected price plunge in the market, which significantly stimulated purchasing and stockpiling demand, resulting in increased production for the month. Domestic silver nitrate enterprises with production and sales qualifications saw their August silver nitrate production up 6.8% MoM and 0.4% YoY. Production in central China fell 3.125% MoM, north-west China up 42% MoM, southern China down 6.8% MoM, and southern China increased 38.5% MoM. August silver nitrate orders showed tidal characteristics, with more orders in early to mid-August and fewer in late August. This situation arose because Japan unexpectedly raised interest rates at the end of July, leading to market sell-offs of financial assets due to currency exchange rate issues. The stock market and financial asset prices plummeted, causing silver prices to drop below market expectations. Downstream enterprises began large-scale stockpiling at low prices. Subsequently, prices adjusted, and market demand weakened, making the tidal changes in August orders very evident.
It is expected that silver nitrate production in September will increase slightly for three reasons: 1) the market starts stockpiling for the Mid-Autumn Festival and National Day in September; 2) silver prices remain attractive; 3) some new silver nitrate enterprises are entering the market, possibly boosting production.