UNITED STATES January 16 2015 6:15 PM

NEW YORK (Scrap Register): Silver pricers are likely to average $15.2 an ounce during this year, as per Barclays latest metal outlook.

The silver balance could reach a turning point in the next couple of years as mine supply responds to lower prices, but before then, the fundamentals point to further price weakness.

Barclays believe the lows for the year could test levels not reached since 2009. Although there have been some mine closures as a result of lower prices, output has not been hugely affected to date.

But in Barclays' view, a lower price environment is likely to start to take its toll as 2015 draws to a close as projects are culled and production cut.

Thus, they forecast mine output will fall for the first time in eleven years, having hit successive record highs over that period. Despite the fall in supply and firming industrial demand, the market is set to remain in surplus.

Silver tends to outperform when both industrial and investment demand are growing, but Barclays believes investor appetite is likely to falter in gold’s shadow.