Silver Institute Releases Report on Silver Industrial Demand

REPORT FEATURES OUTLOOK FOR MAJOR SILVER FABRICATING AND SILVER INDUSTRIAL MARKETS

(Washington, D.C. – November 20, 2012) – The Silver Institute today released a  report, the Outlook for Silver Industrial Demand,  that examines the current and future outlook for global industrial silver demand.  The 14-page report features an economic outlook, as well as current and future silver industrial demand projections in all the main categories of silver industrial demand through 2014.

Looking ahead, the report projects an estimated 6 percent rise in silver industrial demand to a new record high in 2014, which will account for an estimated 57 percent of total silver fabrication that year.  A steadily improving economic outlook, strong growth in the automobile sector, and a recovery in the housing and construction industry are primary reasons for the forecasted uptick in demand, according to Thomson Reuters GFMS, which produced the report for the Silver Institute.

At present, against a backdrop of a continuing sluggish global economy, a downturn in silver industrial demand is forecast for 2012, although a recovery in 2013 will see these losses entirely recouped.  The report states that during 2012-14, some silver industrial market segments will outperform, including the use of silver in ethylene oxide (EO) plants, which is already experiencing a strong performance this year.  Silver oxide is employed as a catalyst to produce EO, which is then used as a key ingredient in a range of products such as polyester.   The authors project photovoltaic offtake to broadly stabilize in 2013, following a forecasted downturn in 2012, and anticipate robust demand in the use of silver in photovoltaics in 2014.

Regionally, over the past 10 years, the most notable change has occurred in emerging markets demand, principally China.  Of note, China accounted for just 8 percent of global silver industrial demand in 2000, compared to a strong 18 percent contribution last year, and is expected to grow further.   The report notes that United States industrial silver demand will remain particularly elevated, enhancing its position as a leading manufacturer of high-end silver materials.

In looking at the essential role silver plays in  various applications, the report addresses the use of silver in specific consumer and industrial product lines and provides demand projections for the products discussed, especially in automobiles, photovoltaics, televisions, and personal computers.

Established in 1971, the Silver Institute serves as the industry’s voice in increasing public understanding of the many uses and values of silver.  For more information please visit www.silverinstitute.org.