SMM

During the morning session, silver prices hit new highs again, with domestic spot TD prices breaking through the key level of 20,000 yuan/kg. The spot-futures price spread between TD and the most-traded SHFE silver 2602 contract remained inverted, and overseas silver price gains continued to lag behind domestic ones. In the Shenzhen market, premiums continued to rise today, with investment demand significantly stronger than industrial demand. In Shanghai, mainstream quotations from suppliers for national standard silver ingots against TD were adjusted higher to premiums of 50-80 yuan/kg, or premiums of 100-130 yuan/kg against the SHFE silver 2602 contract. In Shenzhen, suppliers adjusted premiums against TD higher to 100-120 yuan/kg, or premiums of 100-130 yuan/kg against the SHFE silver 2602 contract. Before the holiday, transactions in the spot market were mainly driven by investment demand in Shenzhen, with some downstream enterprises making small necessary stockpiling due to concerns about continued price increases. Ahead of the New Year's Day holiday, transactions in the spot market improved, supported by overheated investment demand for precious metals.