This week marks the last week of December, during which most downstream enterprises and traders have entered the year-end accounting period, and the industry chain has gradually cleared inventory and conducted accounting. So, how is the market stockpiling situation?
Last year, due to strong demand for raw materials from the PV sector, coupled with market expectations of a rise in silver prices in 2024, the market engaged in significant pre-holiday stockpiling in January to facilitate market digestion.
This year, as downstream enterprises began their holiday break before the Chinese New Year and silver prices fluctuated within the range of 7,000-8,000 yuan per kilogram, market stockpiling sentiment has been low. Additionally, other sectors, such as the jewelry industry, have limited stockpiling demand for spot silver due to high silver prices. As a result, this year's market stockpiling demand has significantly decreased compared to last year. The electrical alloy industry also conducted stockpiling around November based on its order situation.
Moreover, due to the persistently high prices of ore raw materials, the long-term contract quotations from smelting enterprises have slightly increased compared to before, leading to weakened market demand for long-term contracts. The market has primarily focused on spot order procurement based on immediate needs.
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