Silver

GLOBAL SILVER INDUSTRY SCENARIO

Price resilience amidst global uncertainty

Silver prices rallied in FY2025, reaching a high of US$ 34.51 per toz in October 2024, with a full-year average of US$ 30.39 per toz, a 29% increase over US$ 23.55 in FY2024. Despite some profit-booking, silver retained most of its early gains, stabilising above the US$ 32 per toz mark. Price support stemmed from economic uncertainties surrounding the new fiscal and trade policies in the US, notably heightened tariff concerns.

Sustained and diverging demand

Trade uncertainty triggered record silver deliveries into the US, pushing Chicago Mercantile Exchange-approved vault holdings past 400 Moz, a 30% jump since the US election. Meanwhile, London vault inventories saw a 9% monthly decline, tightening the market and raising short-term silver leasing rates.

Silver’s dual role as an industrial and precious metal created a mixed performance. While gold’s stagflation-driven rally supported silver, fears of a global trade war affected investor confidence in industrial metals.

INDIA SILVER INDUSTRY SCENARIO

India’s silver demand remained relatively sluggish, impacted by a rebound in domestic prices following a three-month low in December 2024. While jewellery consumption softened, silver imports surged in early 2025, posting the highest January figure since 2008. Industrial silver demand remained subdued but continued to gain traction from new-age applications such as electric vehicles (EVs), 5G networks, and solar energy.

SILVER AS A CRITICAL METAL

Silver is critical for modern industries due to its unmatched electrical conductivity, making it essential for solar panels, EVs, and advanced electronics. It enables efficient renewable energy capture, supports widespread electrification, and powers high-performance components. With growing clean energy demands, silver’s role in industrial applications and energy transition makes it indispensable for sustainable development.

HINDUSTAN ZINC: SILVER BUSINESS OVERVIEW

Hindustan Zinc is the only primary silver producer in India. We delivered a strong performance in FY2025, selling 687 MT of silver, almost 100% in the domestic market. With increasing demand for silver in the near future, we plan to expand our existing silver capacity to 1,500 TPA by FY2030, further strengthening our existing positioning as the leading primary silver producer not only in India, but also globally.

OUTLOOK

Looking ahead, global silver production is forecasted to peak at 842 million ounces in CY2025, driven by increased base metal output and new sources coming online in the US and Canada. However, beyond CY2025, production declines are expected with multiple mines reaching end-of-life, unless positive investment decisions support new developments. Mexico’s silver production is forecasted to peak at 209 million ounces in CY2025, before declining year-on-year to 186 million ounces by CY2029.

Composite powders like silver-copper may accelerate thrifting efforts, shaping future silver demand patterns. Overall, silver’s outlook remains cautiously optimistic, supported by renewable energy applications, technological advancements, and sustained infrastructure investments.