SMM

Domestic silver prices strengthened again, with a slight and gradual decline in spot market premiums. In Shanghai, suppliers of large-factory silver ingots lowered their premiums against TD to 180-200 yuan/kg in the morning session. After the silver price rose, some suppliers, facing margin pressure, reduced their premiums against TD to 160 yuan/kg for sales. In Henan and Shandong, some manufacturers lowered their premiums against TD to 100-150 yuan/kg for cargoes self-picked up from production site to ease funding pressure. Purchase enthusiasm in Shenzhen declined somewhat. Silver nitrate and silver powder production in January is expected to be moderate, maintaining rigid demand for stockpiling. However, other end-users generally adopted a wait-and-see stance due to high prices, keeping spot cargo supply relatively tight. Overall market transactions remained sluggish.