Silver Exports Increased, Imports Declined in August [SMM Analysis]

In August, imports of unwrought silver with a purity of ≥99.99% were 24.8 mt, down 76.6% MoM, while exports were 318.1 mt, up 12.3% MoM. Imports of silver nitrate were 100.41 kg, down 56% MoM, and exports were 1,050 kg, up 7,400% MoM. Silver powder imports were 216.1 mt, down 27.9% MoM.

In August, due to Japan's interest rate hike, stock market circuit breakers, and panic selling of financial assets to raise cash, silver prices plummeted. Domestic prices, which were previously higher than overseas tax-included prices, fell, and the price ratio dropped. The profits from the spot-futures price gap in domestic and overseas markets could not offset the price spread between domestic and overseas markets, leading to a sharp reduction in imports, returning to normal levels. However, exports increased due to the price spread, with strong overseas purchase sentiment and active market deliveries.

The decrease in silver nitrate imports and increase in exports were mainly due to the drop in domestic silver prices, which stimulated exports and suppressed imports.

The decline in silver powder imports MoM was primarily due to the acceleration of substitution by domestic cargoes.