HONG KONG – The surplus in the global silver market is expected to edge up to 300-million ounces in 2012 from a year earlier, the global head of metals analytics at GFMS, a Thomson Reuters unit, said on Wednesday.
Philip Klapwijk, speaking on the sidelines of a conference in Hong Kong, also said demand for silver fabrication had weakened, although some of the decline had been offset by higher silver output in China.
"The situation this year is that we see weaker fabrication demand on two main reasons. One is industrial fabrication has slowed quite considerably this year, especially in recent months, and we see weakness especially in the electronics field and photovoltaic end users," said Klapwijk.
Silver prices would move higher for the rest of this year, with a low of $30.90 and a high of $36, he said.
"We are thinking prices will trend higher next year. I'm not convinced that we are going to $50. I think we will definitely see $40-$45 prices. I'm more comfortable with that."