Silver News

China Raises Silver Quota

The Chinese government soon is expected to issue 2004 export permits for silver to selected Chinese firms which would increase quotas by as much as 39 percent, according to government officials.

In early November, the Ministry of Commerce announced that it might allow export quotas of 3,050 tons of silver compared to 2,300 tons last year.

While this increase appears impressive, Paul Walker, a director at London-based Gold Fields Mineral Services, notes that “this may be business as usual.”

“For one thing, quota reporting may be catching up to reality,” said Walker. “In addition, China’s increased importation of base metal concentrates gives them a ready pool of silver within the country.”

China's silver production was about 5,000 tons last year compared to about 2,000 tons two years earlier. Currently, China ranks 5th in the world in silver production behind Mexico, Peru, Australia and the United States. China consumes 1,664 tons annually compared to 6,587 tons in the United States.

China is continuing efforts to increase their silver market through liberalization tactics such as allowing more foreign investment and establishing market-driven precious metals exchanges. In the fall, the Shanghai Contor Enterprise Develop Company announced plans to build the Shanghai Silver Industry Exploitation Zone, which will “enhance the competitiveness and status of the Chinese silver industry in the international market.”

Silver News - First Quarter 2004