[SMM Analysis] Silver Prices Reach New Highs, 2024 Silver Production Hits Record High

The silver market concluded 2024 with a price surge of nearly 30%, and the soaring prices also drove demand for production among smelters. According to SMM statistics, the production of 1# silver in 2024 reached 17,681.045 mt, up 8% YoY.
1. The Proportion of Mined Silver Remained Basically Flat
In 2024, the price of silver-containing ore continued to rise. With silver production remaining flat, the mined silver output in 2024 was basically the same as in 2023. The maintenance of this year's mined silver output was supported by a collective increase in ore coefficients and a nearly 30% surge in silver prices. Based on our preliminary understanding, most domestic ore suppliers did not increase ore supply this year, and the majority of China's silver exists in the form of reserves and spot. Therefore, it is evident that the mined silver output in 2025 will likely maintain a relatively stable but weak supply trend.
2. The Proportion of Lead-Associated Ore Is Increasing
The volume of silver associated with lead ore increased by 5% YoY. Lead and copper are also major associated metals of silver. Among imported ores, which serve as an important supplementary source, enterprises importing under the bonded silver trade model also show a higher proportion and volume of associated lead metals.
3. Production Supply Increase Is Mainly Driven by Recycled Silver
Boosted by the continuous rise in silver prices, the supply of recycled silver increased in 2024. Various industries showed high enthusiasm for selling scrap silver, and recycling enterprises were eager to take orders due to the sustained price surge. The market's recycling rate, urgency, and enthusiasm significantly improved.

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