
In 2008, output of Chinese silver ranked the first all over the world with 9,587 tons, increasing by 5.45% YOY. The growth rate decreased compared with over 20% in previous five years. Meanwhile, there is no change in distribution of domestic silver. Most are spin-offs from copper, lead or zinc. Others are from regeneration or independent silver ores.
In 2008, main provinces for silver production were Hunan, Henan, Yunnan and Jiangxi. Enterprises ranking top four in output were Yuguang Gold and Lead Group, Yunnan Copper, Xinda Silver Industry, Chenzhou City Jingui Silver Industry.
In 2008, export quota of silver was 4,800 tons. On August 1st, 2008, the 5% export rebate was eliminated. Affected by rebate elimination and price decrease, export volume was 4,043 tons, 441 tons less than in 2007.
Silver powder import increased to 1,511 tons in 2008, rising by 54.34% YOY. Import of silver concentrate reached 70,100 tons, declining by 62.84% YOY.
In 2008, there was no great change in Chinese sliver consumption structure compared with 2007. The consumption reached 4,500 tons. The growth rate of consumption exceeded 10% for years.
Silver price trend depends on two factors: investment/speculation demand of silver as a product and demand & supply of silver. Investment demand is closely related to global financial liquidity (inflation level) and USD trend. It is predicted that the global investment demand is low in 2009. As to demand & supply of silver, it is estimated that supply exceeds demand in 2009; in 2010, price will benefit from the huge export decrease of Chinese primary silver.
In 2007, 51% of silver demand was from industrial fields, including electricity, electronics, silver based solder, etc. Benefitted from global economy booming, silver demand from industrial fields was in stable increase in the past six years. Compound annual growth rate (CAGR) was 5.2%. It is estimated that demand from industrial fields will decline by 3%-5% affected by global financial crisis in 2009. In 2007, consumption demand (photography, jewelry, silverwares, silver coins and medals) took up 43% of the aggregate demand. Due to the decreasing demand from photography, declining tendency of total silver consumption demand could not be got rid off in a short period.
70% of silver is the spin-off of copper, lead, zinc and gold. From 2005 to 2007, substantial price increase of these metals resulted in the release of huge mine productivity in 2009-2010. It is believed that as long as prices of these metals are higher than production costs, silver supply will be in stable increase with the increasing outputs of copper, lead and zinc( though prices of these metals have declined since 2008).
It is predicted that global industrial demand for silver will rise in the second half of 2009 though demand of the whole year may be lower than in 2008. Output of associated minerals of silver is reduced while new applications of silver are emerging. In the long run, the prospect of silver is optimistic. Rapid development of Chinese economy pushes silver consumption. Chinese silver manufacture will enter increasing period. Silver output is estimated a stable increase in 2009 but growth rate will decline. Chinese silver industry is heading to large scale, brand and internationalization. International cooperation opportunities are increased. There is great potential in Chinese silver consumption market. Consumption growth rate will be higher than output growth rate in the future.
Investment in further processing of silver will be hot in China. Major investment objects are E-silver paste, nanometer silver powder, nanometer silver antimicrobial material, high-performance silver based alloy and electric shock, etc.
Through this report, readers can acquire more information:
-Production in Chinese silver industry
-Chinese silver consumption
-Import & export of Chinese silver products
-Main policies on Chinese silver industry
-Main Chinese silver producers and their operations
-Silver price trend in Chinese market
-Development trend of Chinese silver industry
-Investment opportunities in Chinese silver industry
Following persons are recommended to buy this report:
-Silver producers
-Silver traders
-Silver processors
-Jewelry producers
-Investors concerning the silver industry
-Research institutions concerning the silver industry
-Others concerning silver industry
Source: China Research and Intelligence
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About the Author
Based on the database, Interviews and research methods from China Research and Intelligence, CRI analyzes the development and opportunities in this industry clearly.
Contacts:
Eileen Gu
China Research and Intelligence
www.shcri.com
Email: eileen@shcri.com
TEL: 86-21-6852-1029
86-21-5842-6733
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