Silver prices consolidate on the Chinese market
2014-11-20 09:50:23 [Print]
BEIJING (Asian Metal) 20 Nov 14 - After a bout of rebound, silver prices lingered at RMB3,480-3,485/kg (USD19.45-19.48/oz) on the Shanghai spot market on Wednesday. The trading remained somewhat flat.
A source from a Shanghai-based trading company reported that their company sold around 2t of silver ingots with concluded prices prevailing at RMB3,480-3,485/kg (USD19.45-19.48/oz) on the Shanghai spot market on Wednesday, up by around RMB10/kg (USD0.05/oz) compared with Tuesday. “The trading is somewhat flat on the spot market, and buyers are still very prudent about purchasing the metal before the minutes of Fed meeting are released,” said the source.
The trader holds few stocks and predicts that silver market trend is not very clear and may consolidate at the current prices.
A source from another Shanghai-based trading company reported that silver ingot prices consolidated at around RMB3,480-3,485/kg (USD19.45-19.48/oz) on the Shanghai spot market on Wednesday, up by around RMB10-15/kg (USD0.05-0.08/oz) compared with Tuesday. There is no premium over silver futures for silver ingot 99.99%min on the spot market this week, indicating the weak buying on the physical market. “As the demand is weak on the Chinese market, silver ingots on the physical market may be traded at a discount to silver futures on the SHFE in the coming days.”
The source commented that there is no decline in the consumption of silver on the Chinese market in the near term, but the silver export declines, leading to an increase in the supply of the metal on the Chinese domestic market.
The source predicted that silver prices may consolidate at the current level or climb up slightly in the near term but may remain weak in early 2015.
