About 1,468 tonnes of silver were imported from January to September, while in 2019, 5,598 tonnes of silver was imported.
Due to the huge increase in imports due to the high supply of scrap silver, people are moving out of silver
Investors and low-income people of the country are selling silver. The supply of scrap silver is increasing, which is meeting the domestic demand. Due to this, the import requirement has also reduced considerably.
According to data from the Ministry of Commerce and Industry, only 11.28 tonnes of silver were imported in September 2020, a 96 per cent decrease from the same period last year. So far this year (January to September), the country imported about 1,468 tonnes of silver. While in 2019, 5,598 tonnes of silver were imported in a year.
Increased supply of scrap in the market
Chirag Seth, Principal Consultant-South Asia, Metal Focus, said imports have come down because silver jewellery scraps and bars are coming on the market in a big way. Rishab Singhal, chief marketing officer of SB Ornaments, a major bullion dealer, said that about 300 tonnes of scrap silver is coming to the market every month.
Scrap Silver was not coming last year
Last year, scrap silver was coming at this time, but this year is coming in a big way. The deficiency that is left is that of Hindustan Zinc. Hindustan Zinc supplies about 40-50 tonnes of silver every month in the domestic market.
Those who bought at the level of 72,000 in 2011 are now selling
Singhal said that those who had invested in silver at the rate of Rs 72,000 per kg in 2011 are now selling. I am also observing the trend that lower middle-class people and migrant people in villages are selling silver to raise cash to meet their daily needs. Chirag Thakkar, CEO of Amrapali Group Gujarat, a leading silver importer, said that people are becoming interested in selling silver due to the price increase.
In August, Silver Future touched a record high of 77,949.
Silver Future was trading at 46,000 on MCX in January. In August, it touched a record high of Rs 77,949. It closed at Rs 61,653 per kg on Friday. Thakkar said that for a long time, the price of silver was running at a low level, now that it has intensified, then people are getting out of it.
Silver demand in the market has also come down due to the coronavirus epidemic and economic slowdown caused by the lockdown. A jeweller from Chennai said that Payal has not been selling in the market since March. According to traders, this year the total silver imports could be in the range of 3,200-3,500, which will be 40% less than the previous year.
#tonnes #silver #imported #September #decline #period #year