May Silver Import and Export Continue to Heat Up [SMM Analysis]

In May 2024, the export volume of unrefined silver with a purity of ≥99.99% was 386.6 mt, up 5% MoM; the export volume of semi-finished silver with a purity of ≥99% was 0.2 mt; the import volume of unrefined silver with a purity of ≥99.99% was 1.71 mt, up 8.9% MoM; the import volume of semi-finished silver with a purity of ≥99.99% was 1.055 mt, up 27.3% MoM.

The import and export data of silver in May both increased MoM, with different reasons for the increase in imports and exports.
Regarding export data, China has always been a major exporter of silver ingots. In May, silver exports continued to hit new highs, with cumulative silver exports from January to May reaching 1,700.3 mt, up 4.5% YoY. Besides the high silver prices in May and the strong shipment intentions of smelting producers, the domestic demand for imported ores was greater. Since domestic imports mainly consist of copper-associated silver and silver-associated lead, the market ore prices remained high. Due to the general rise in non-ferrous metals, various associated metals in the ores were also priced. Compared to last year, the prices of associated metals like silver have increased to varying degrees this year. The proportion of exports under "processing trade" remained high.
Due to the high SHFE/LME price ratio, there was demand for silver ingots. However, although the import volume increased, the total volume remained low.