India Silver imports fall by half during Jan-July

INDIA September 08 2016 4:29 PM

MUMBAI (Scrap Register): After India imported over 20000 tons of silver in the last three years, imports nosedived in 2016 in line with gold. From January to July this year, imports fell over half and only 2,111 tons of silver was imported in India against 4,362 tons last year, lowest after 2012.

Demand was low and huge import of silver by traders in past years was coming in the market as raiders and stockists were booking profit. That has also resulted in prices quoting at $1 per ounce discount in July and discount has shrunk to 30 cents per ounce.

Indian silver imports have slumped this year largely due to a supply overhang in the domestic market, attributed to unsold inventories across the value chain and the high level of above the ground stocks at secured vaults and in private hands. It is expected that the trend will continue.

In the last three decades, India has imported approximately 87,000 tons of silver. And the three decade average price of silver was Rs 16,447 per kg, which is two-third of the current price level, according to the GFMS data.