September Silver Ingot Exports Increased, Silver Powder Imports Surged MoM [SMM Analysis]

In September, the export volume of unwrought silver with a purity of ≥99.99% was 362.9 mt, up 14% MoM; the import volume of silver powder was 307.4 mt, up 22% MoM. Although the production of silver ingots increased in September, the export volume increased even more. Why did the import volume of silver powder still increase?

In September, due to the domestic silver price being lower than the foreign price including tax, the demand for imported silver ingots in China dropped significantly, bringing the import volume of silver ingots back to normal levels. However, the export volume in September remained relatively high, with domestic silver ingot production up 7.5% MoM. Currently, domestic silver ingot production mainly relies on the silver content from imported ore, hence the increase in silver ingot exports in September.

The import volume of non-flake silver powder with an average particle size of less than 3 microns increased by 216% MoM, and the demand for other silver powders mostly showed growth. The significant increase in silver powder imports in September was due to pre-holiday stocking for the National Day holiday. The response speed of overseas enterprises was slower compared to domestic ones, and domestic enterprises could respond and ship relatively quickly. If orders suddenly increased in the domestic market, they could respond in time. Therefore, there was a need to increase the stock of imported powder for production. Additionally, the overall silver price in mid-to-late September was not high, so the market stocking sentiment was moderate.