As of the 18th, the silver market has been operating for two weeks. So, how has the market performed recently?
Price
Over the past two weeks, silver prices fluctuated between 7,900-8,200 yuan/kg, influenced by market risk aversion due to Trump's tariff policies. Macro bullish factors combined with risk aversion sentiment supported the continuous rise in precious metal prices.
Spot Premiums/Discounts
Domestic spot premiums/discounts remained stable
In the Shanghai market, cash spot national standard silver ingots with large volumes are still quoted at parity to slight discounts, while large-scale silver ingots are quoted at 2-3 yuan/kg. Although absolute prices are relatively high after the holiday, downstream operating rates are low, leading to weak rigid demand. Coupled with pre-holiday stockpiling, demand remains sluggish. However, as it is currently mid-month and traders face relatively small financial pressure, market quotations remain relatively stable.
Spot premiums/discounts in Hong Kong declined
In Hong Kong, large ingot premiums/discounts slightly declined, mainly due to recent silver pick-up in London for transportation to the US. As a result, the price spread between COMEX and LBMA has been narrowing. Due to pick-up cycles and shipping schedules, market bears need to concede part of their futures market profits to ensure profitability, leading to reduced spot procurement premiums/discounts. Meanwhile, customers unable to accept this have shifted from foreign trade to domestic trade, resulting in weaker foreign trade orders.
Downstream spot demand remains sluggish
After the statutory holiday, most downstream enterprises resumed operations after the Lantern Festival. The PV sector resumed earlier with higher operating rates. However, due to producing based on sales and low terminal operating rates, new orders remain limited. Additionally, some enterprises had stockpiled before the holiday and are currently consuming inventory. After the Lantern Festival, other downstream silver sectors gradually resumed operations. However, with silver prices at relatively high levels and the current period not being a peak season for stockpiling, market transactions remain sluggish.
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