TD Securities: Chinese Silver Imports to Record Robust Surge

SEATTLE (Scrap Monster): The Chinese silver imports are predicted to witness significant surge over the coming weeks, as traders are seen taking best advantage of a strong demand situation in the market. The robust demand for the white metal had lifted its domestic prices well above the international prices.

The demand for silver as a financial asset has witnessed notable jump, primarily due to its existence as a cheaper alternative to gold. Silver has been in demand also due to its industrial demand, especially as an important material in manufacturing solar panels.

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The spread between the Chinese and international silver prices has widened further during recent times. This has created the incentive to export more materials to China, thus narrowing the silver supply to other countries.

The Chinese silver imports had totalled 390 tons in December 2023, hitting the highest level in almost three years. After witnessing a slowdown in early-2024, the imports gained strength to total over 340 tons in April this year. The silver imports by the country have averaged at around 310 tons over the past five months, data suggested.

The premium for silver metal on Shanghai spot prices surged significantly above 15% last week. At the same time, continuously strong silver demand from solar industry has led to depleted local stockpiles of the metal, noted Daniel Ghali, senior commodity strategist at TD Securities Inc.