Chinese Silver Stockpiles at Highest Level in a Year

Bloomberg reported that China’s silver stockpiles saw a big increase this year as slower economic growth resulted in weaker demand for the white metal.

As quoted in the market news:

Inventory monitored by the Shanghai Futures Exchange almost tripled to 341.5 metric tons April 9, the highest in a year, from 122.8 tons in the final week of 2014, according to weekly bourse data compiled by Bloomberg. Stockpiles on the Shanghai Gold Exchange also more than doubled this year to 263.97 tons on April 3, exchange data show.

Chinese silver producers delivered the metal to exchange warehouses amid falling physical demand, said Jin Xiangyun, a senior precious metals analyst at Beijing Antaike Information Development Co. China’s economy expanded at the weakest pace since 2009 last quarter, indicating a deepening slowdown. The global benchmark price has fallen 17 percent in the past year.

Jin commented:

Silverware and jewelry makers said they wouldn’t produce much because of weak demand. Fabricators usually purchase large amounts of refined silver after Chinese New Year holidays. That didn’t happen for this year.

Click here to read the full Bloomberg report.