星期四, 十月 1, 2020
Home PV News Silver prices expected to drop 3% in 2020

Silver prices expected to drop 3% in 2020

According to the 2020 World Silver Survey 2020 by the U.S.-based Silver Institute, the metal’s price will decline by only 3% this year, despite the impact that the Covid-19 crisis will also have on demand. In the global PV industry, silver demand is forecast to drop 3% from 98.7 million ounces in 2019 to 96.1 million ounces this year.

Source:pv magazine

Silver prices are expected to only suffer modest losses this year despite the Covid-19 crisis, according to the World Silver Survey 2020, published by the Silver Institute.

Total silver supply is expected to fall 4% from 1,023.1 million ounces in 2019 to 978.1 million ounces this year, while demand in the global PV industry is forecast to drop 3% from 98.7 million ounces to 96.1 million ounces.

In 2019, the total silver supply increased by only 4 million ounces from the preceding year, while demand in the PV industry grew by 7% from 92.5 million ounces in 2018.

Covid-19 crisis

According to the report, the price of silver fell to its lowest level in more than a decade with the onset of the Covid-19 crisis and the resulting panic in global markets around mid-March.

“Looking ahead, roughly 80% of silver’s demand comes from areas likely to suffer as a result of the Covid-19 crisis,” the authors of the report said. “We also envisage sizable declines for supply, as restrictive measures affect a large number of mines.”

They also said that current uncertainties linked to the Covid-19 crisis mean that the silver market outlook for the rest of this year is “incredibly challenging. “The broad assumption we have taken is that some sort of lockdown will be in place across most major markets for a period of six to eight weeks and that this will be followed by a month of a gradual return to normality,” they stated.

Revised outlook

Overall, the global silver supply is expected to its lowest point this year since 2009. Despite the drop in demand, the average silver price for 2020 is set to decline by just 3% to $15.70 per Troy ounce.

“By year-end, we would not be surprised to see the white metal’s price testing the $19 mark,” the researchers said.

In February, when the pernicious economic effects of the Covid-19 pandemic were still unfathomable, the Silver Institute predicted that silver demand in the solar industry would fall slightly this year, but remain near recent record-high levels. Under such an outlook, the Silver Institute had said that the annual average silver price was expected to rise 13% to a six-year high of $18.40 in 2020.

In a report published in June 2018, the Silver Institute highlighted how the amount of silver needed by the PV industry could fall from 130 mg per cell in 2016 to approximately 65 mg by 2028.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Apple data center in Denmark powered by 50 MW of solar

Apple has revealed that its data center in Viborg, Denmark, is now being powered by a 50 MW solar project under a long-term power...

Solar + storage experiment in Tampa Bay selected for Solar Energy Innovation Network project

An innovative solar + storage research project led by the Tampa Bay Regional Planning Council has been selected as a finalist for the Solar...

Chinese PV Industry Brief: 350 MW wind-solar project, 200 MW of floating PV

Longyuan Energy said this week that it has signed an agreement with the municipal authorities in Binzhou, Shandong province, to build 300 MW of solar...

IEEE creates education and credentialing program for interconnecting distributed resources to the grid

IEEE and the IEEE Standards Association (IEEE SA) announced the IEEE Std 1547-2018 Distributed Energy Resources (DER) Interconnection Commissioning: Education and Credentialing Program, a new...