Record-Breaking February Silver Imports in India Expected to Surge by 66% This Year
India witnesses a surge in silver imports, hitting record highs in February and expected to rise by 66% throughout the year, driven by reduced tariffs and high demand.
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India witnessed a significant surge in silver imports during February, reaching a record high of 2,295 metric tons, marking a remarkable increase of 260%. The surge in India's silver imports was mainly attributed to lower duties, which prompted substantial purchases from the United Arab Emirates (UAE), according to government and industry sources.
Projections suggest that the trend of increased silver imports will persist, with expectations of silver imports rising 66% compared to the previous year. This surge in demand from India, the world's largest consumer of silver, has the potential to impact global prices, which are already trading near their highest levels in three years.
February silver import record entails 939 tons of silver from the UAE, driven by traders seeking to capitalise on the reduced duty rates. This surge in imports has been a notable shift from the previous year, with India already importing 2,932 tons in the first two months of 2024, exceeding the total imports for the entire year of 2023.
However, this influx of imports in early 2024 has led to an oversupply situation in the Indian market, resulting in prices dipping and forcing banks to curtail imports in March.
Industry experts suggest that the spike in imports is part of a cyclical pattern, with the industry replenishing stocks after a period of depletion in the previous year. It's anticipated that the increasing silver import trend in India will continue into 2024, with projections indicating imports could reach 6,000 tons, driven by robust silver demand in India from the solar and fabrication industries.
There is a growing interest among investors in Indian silver market trends as an alternative investment, as they perceive it to offer potentially higher returns compared to gold. This sentiment is further expected to contribute to the upward trajectory of silver imports in the coming months.
