Precious metal prices strengthened in early trading today, with the spot-futures price spread of SHFE silver 2510 contract narrowing to within 20 yuan/kg. Suppliers in the spot market actively lowered premiums or offered discounts for sales. According to SMM, warrant prices of standard silver ingots in Shanghai with cash payment were quoted at a discount of 2 yuan/kg to parity against TD, while large smelters' silver ingots were quoted at a premium of 2 yuan/kg against TD but with thin trading. Some suppliers offered discounts of 15-18 yuan/kg against SHFE silver 2510 contract, with cargoes quoted against futures contracts gaining more advantage amid narrowing intraday spot-futures price spread. Cargoes self-picked up from smelters in Jiangxi were quoted at a discount of 2 yuan/kg against TD, while standard silver ingots in Shenzhen were traded at discounts of 3-5 yuan/kg against TD quoted by suppliers. Downstream purchasing enthusiasm remained generally weak after silver prices strengthened, prompting suppliers to actively offload inventories. After silver prices jumped initially and then pulled back today, multiple market traders reported significantly improved trading compared with early this week.
