China silver imports soar last year

BEIJING, Apr 25 (Commodity Online): World's largest silver consumer, China said its net imports of silver nearly quadruple to more than 3,500 tonnes in 2010, boosted by sharp increases in demand by the industrial sector and the jewellery industry. According to statistics from the country's General Administration of Customs, In 2010 China exported 1,575 tonnes of silver, 58 per cent less than in 2009, and imported 5,159 tonnes of the metal, 15 per cent more than in the previous year. China had long been a net exporter of silver, with the net exports of the metal reaching 3,000 tonnes in 2005. However, the country became a net importer of silver in 2007. Silver demand in China has increased sharply in recent months and years as more and more middle classes and savers in China use silver as a store of value. At present, about 70 per cent of China's silver demand comes from the industrial sector. Silver is widely used in the production of electronics products such as cell phones. In 2010, China's output of cell phones surged 35 per cent year on year to nearly 900 million units, each of which needs about 0.35 gram of silver. In recently years, silver demand also experienced significant increases in other industrial segments such as medical, solar power and water purification industries. Silver price increased about 20 per cent in the first quarter of this year, after surging more than 80 per cent in 2010.