SMM

Silver prices fluctuated at highs today, and the spot market maintained high premium quotes for transactions. The spot-futures price spread between TD and the most-traded SHFE silver 2512 contract held at 10-20 yuan/kg during the day. In Shanghai, suppliers of silver ingots lowered spot premiums against TD slightly to 50-70 yuan/kg, or quoted spot premiums against the SHFE silver 2512 contract at 40-60 yuan/kg for transactions. In Shenzhen, suppliers of silver ingots traded at spot premiums of 40-50 yuan/kg against the SHFE silver 2512 contract, while some suppliers held back from selling and adopted a wait-and-see stance at spot premiums of 50-70 yuan/kg against the SHFE silver 2512 contract. In the short term, spot premiums in the domestic market dropped back slightly, with downstream users restocking based on rigid demand and buying the dip. As speculative buying enthusiasm for precious metals pulled back, spot premiums were expected to gradually pull back to normal levels.