Silver Market Report October 2014

Contents

Abstract 1
1 Chinese domestic financial overview 1
1.1 CPI up by 1.Asian Metal Copyright1 Crude oil futures prices continue to fall back 3 2.Asian Metal Copyright6% and PPI down by 1.8% YOY in September 1
1.2 PMI down by 0.3% in October 2
2 International financial overview 3
2.1 Crude oil futures prices continue to fall back 3
2.2 US dollar continues to strengthen in October 4
3 Company news 5
3.1 Jiyuan Wanyang’s lead output to increase by 10% with silver production stable in October 5
3.2 Chihong Zinc & Germanium’s lead smelting project starts trial production in Inner Mongolia 6
3.3 Hongda Metal’s silver ingot output to increase 20% in 2014 6
4 Chinese domestic market review 6
4.1 Silver prices plummet late October on strengthening US Dollar 6
4.2 China’s exports of silver wire continue to decline in October 7
5 International market review 8
5.1 US Dollar continues to rise, London Silver falls four-year low 8
5.2 Gold and silver ETF stocks decline continuously 9
6 Production data 10
6.1 Major Chinese silver smelters’ silver output up by 2.15% MOM in October 10
6.2 Silver ingot stocks at major Chinese silver smelters up by 48.75% MOM in late October 2014 12
7 Import and export data analysis 14
7.1 China’s silver ore/concentrate imports down by 4.11% MOM in September 14
7.2 China’s silver imports up by 42.36% MOM in September 2014 16
7.3 China’s gold ore/concentrate imports up by 21.07% MOM in September 19
8 Related industry developments 23
8.1 Copper concentrate supply increases, anode mud supply sufficient on Chinese market 23
8.3 Chinese palladium powder prices consolidate 24
9 Outlook for October 25


Graph

Graph 1: China’s CPI and PPI trend in 2012-2014 2
Graph 2: China’s PMI in 2012-2014 3
Graph 3: US crude oil futures price trend on major transaction market in October 4
Graph 4: US dollar index trend 5
Graph 5: Chinese silver ingot prices in October 2014 7
Graph 6: Loco London Silver trend in October 8
Graph 7: Gold inventories of the eight main ETFs worldwide Jan-Oct 2014 9
Graph 8: Silver inventories of iShare Silver trust Jan-Oct 2014 10
Graph 9: Ratios of silver smelters in different scales in China 11
Graph 10: Chinese main silver smelters’ outputs Jan-Oct 2014 12
Graph 11: Silver ingot stocks in China Jan-Oct 2014 13
Graph 12: 1 China silver ore and concentrate imports Jan 2013-Sep 2014 15
Graph 13: China’s silver imports by product category and proportions in September 18
Graph 14: China’s gold ore and concentrate import Jan-Sep 2014 20
Graph 15: Loco London Palladium prices in 2014 24
Graph 16: Palladium powder 99.95% prices in October 2014 25


Table 1: Silver output in Hunan, Henan and Zhejiang in October 11
Table 2 Silver ingot stocks held by smelters in Henan, Zhejiang, Gansu in October 13
Table 3 China’s silver ore and concentrate imports by region in September 15
Table 4: China’s silver import volumes and origins in September 16
Table 5: China’s silver imports by product category in September 17
Table 6: China’s silver export by country in September 18
Table 7: China’s silver exports by product category in September 18
Table 8: China’s gold ore/concentrate imports by country in September 20
Table 9: China’s gold ore/concentrate imports by country Jan-Sep 2014 21
Table 10 Top ten gold ore and concentrate importers in China in September 2014 22