Early this week, the US ISM Manufacturing PMI unexpectedly fell, reigniting calls for the US Fed to cut interest rates. Trade tensions escalated again as Trump announced an increase in tariffs on imported steel and aluminum to 50%, effective from June 4. Additionally, geopolitical conflicts intensified. Although substantive negotiations on the Russia-Ukraine situation were underway, localized conflicts escalated. In the Middle East, despite ongoing US-Iran talks, progress was slow with significant differences remaining. Multiple favourable macro front factors boosted safe-haven assets such as precious metals. Silver prices opened higher with a gap after the holiday and fluctuated at highs. [Economic Data] Bullish Factors: US ISM Manufacturing PMI for May: 48.5 (previous: 48.7, expected: 49.5) US ADP Employment Change for May: 37,000 (previous: 60,000, expected: 110,000) US EIA Crude Oil Inventories for the week ending May 30: -4.304 million barrels (previous: -2.795 million barrels, expected: -1.035 million barrels) [Spot Market] Silver: This week, silver prices opened higher and consolidated amidst macro bullish sentiment. However, as the operating rate of silver nitrate production declined, demand for spot silver contracted. Towards the end of the week, there were signs of a decrease in spot premiums. Downstream players were generally cautious, waiting for clearer trends in silver prices before making procurement and inventory decisions. After the Dragon Boat Festival, the enthusiasm for downstream purchases significantly declined. Mid-week, the spot-futures price spread between TD and SHFE silver front-month contracts widened, leading to an increase in delivery demand at some trading locations. Market transactions were mainly among traders. Towards the end of the week, the premium for tonne-grade national standard spot silver ingots for self pick-up in the Shanghai area against TD silver decreased to a quoted range of 3-4 yuan/kg or a discount of 5-8 yuan/kg against the SHFE silver 2506 contract. After negotiations, some suppliers lowered their premiums, resulting in a small volume of transactions. In the Shenzhen area, national standard spot silver ingots were traded at a discount of 25 yuan/kg against the SHFE silver 2508 contract. Downstream players still primarily focused on cargo pick-up under long-term contracts, with only a small volume of just-in-time procurement and a strong wait-and-see sentiment. PV: This week, the reference average price of solar cell rear-side silver paste ranged from 5,352 to 5,518 yuan/kg; the reference average price of solar cell front-side fingers ranged from 8,063 to 8,312 yuan/kg; and the reference average price of solar cell front-side busbars ranged from 8,013 to 8,262 yuan/kg. 》View SMM Precious Metals Spot Quotes

[SMM Silver Market Flash News] On the macro side, during the Dragon Boat Festival holiday, the US ISM Manufacturing PMI unexpectedly fell, trade frictions escalated again, and geopolitical conflicts intensified, driving up the prices of safe-haven assets, including silver. Trump announced that he would raise tariffs on imported steel and aluminum to 50%, which took effect on June 4. In the Middle East, although the US-Iran negotiations were underway, progress was slow, and there were significant differences. Despite substantive negotiations on the Russia-Ukraine situation, local conflicts have escalated, increasing the risk of regional conflicts. Due to the ongoing impact of tariff policies on the economy, the US economy is facing downward pressure. Multiple positive factors have boosted safe-haven assets such as precious metals, and the price trends of gold and silver have been strong after the holiday.

[SMM Silver Market Flash News] On the macro side, during the Dragon Boat Festival holiday, the US ISM Manufacturing PMI unexpectedly fell, trade frictions escalated again, and geopolitical conflicts intensified, driving up the prices of safe-haven assets, including silver. Trump announced that he would raise tariffs on imported steel and aluminum to 50%, which took effect on June 4. In the Middle East, although the US-Iran negotiations were underway, progress was slow, and there were significant differences. Despite substantive negotiations on the Russia-Ukraine situation, local conflicts have escalated, increasing the risk of regional conflicts. Due to the ongoing economic impact of tariff policies, the US economy is facing downward pressure. Multiple positive factors have boosted safe-haven assets such as precious metals, and the price trends of gold and silver have been strong after the holiday.

This week, there were only three trading days, and silver prices fluctuated within a high range around $35/oz during the week. Positive signals emerged from the Russia-Ukraine situation, easing market risk aversion and resulting in slightly insufficient upward momentum for silver prices. During the holiday period this week, the US released important economic data such as non-farm payrolls. Precious metals may experience sharp fluctuations. Market risk aversion was strong before the holiday, and trading activity slowed down. [Economic Data] Bullish: UK's CBI retail sales balance for April was -8, compared to the previous value of -41. Bearish: Eurozone's industrial sentiment index for April was -11.2, compared to the previous value of -10.7, and is expected to be -10.1. [Spot Market] Silver: This week, silver prices fluctuated at highs. The spot-futures price spread between silver TD and the most-traded SHFE silver contract fluctuated significantly. As the minor holiday and month-end approached, suppliers closed their accounts early, leading to a decline in market transactions and a strong holiday atmosphere. In the Shanghai region, self pick-up tonne-grade national standard spot silver ingots were quoted at a premium of 3-5 yuan/kg against TD or a discount of 10-15 yuan/kg against the SHFE silver 2506 contract. Some suppliers, after reducing their inventory, quoted a premium of 8-10 yuan/kg against TD or a discount of 5 yuan/kg against the 2506 contract, holding back on sales and adopting a wait-and-see attitude. Recently, downstream operations have been moderate. After completing pre-holiday inventory replenishment, just-in-time procurement has decreased. Additionally, some end-user enterprises are pessimistic about PV installations in H2, and silver paste orders may show signs of weakening after the holiday. PV: This week, the reference average price of solar cell rear-side silver paste ranged from 5,342 to 5,424 yuan/kg; the reference average price of solar cell front-side finger ranged from 8,047 to 8,171 yuan/kg; and the reference average price of solar cell front-side busbar ranged from 7,997 to 8,121 yuan/kg. 》View SMM Precious Metals Spot Quotes

Last Friday night, the most-traded SHFE aluminum 2501 contract opened at 20,375 yuan/mt, reached a high of 20,425 yuan/mt, a low of 20,320 yuan/mt, and closed at 20,420 yuan/mt, up 30 yuan/mt or 0.15% from the previous day.

Economic slowdown and rising inflation put pressure on the European auto market in March 2022.