India Remains Dominant Silver Buyer

India remained a dominant factor in the global silver market, importing 112.4 million ounces in 1997 that has kept India's import level little changed from its record-setting 113.5 million ounces last year, the world silver survey 1998 has said.

Robust silver demand led to substantial reductions of bullion stocks for the ninth consecutive year.

The demand has exceeded supply from mine production and the recycling of scrap by 198 million ounces during last year, the report released by The Silver Institute, a worldwide association of miners, refiners, fabricators and manufacturers, said.

Strong demand from India and surging industrial demand in the United States resulted in record silver offtake last year, totalling 863.4 million ounces it said.

Increases in mine supply and scrap recycling were insufficient to meet the rise in fabrication demand last year which grew by 6.1 per cent. Between 1990 and 1997, cumulative silver fabrication demand has exceeded mine production by 2,226 million ounces.

The gap has been filled by recycled silver scrap, and by the drawdown of 1,084 million ounces of silver bullion inventories, the report added.