Silver prices consolidated horizontally around 8,700 yuan/kg during the day. According to SMM, suppliers holding warrants for national standard silver ingots with spot cash and spot cargo in the Shanghai region were still quoting premiums of 3-5 yuan/kg against TD or discounts of 15-18 yuan/kg against the SHFE silver 2508 contract. The spot-futures price spread was still expected to narrow, and most suppliers had low intentions to sell. It was difficult to close deals at quotes of premiums of 4-5 yuan/kg against TD for national standard silver ingots. There was still an expectation of a decline in the operation rate of silver nitrate downstream in July, while other sectors showed moderate performance. However, overall consumption remained weak, and downstream players were cautiously observing the market.
