China has become an important market in the world for the consumption of the precious metal of silver since its deregulation.
Paul Bateman, executive director of the Silver Institute, made the remarks at the first Annual China Silver Conference held recently in Hohhot, capital city of north China's Inner Mongolia Autonomous Region.
Before market liberalization in January 2000, silver was treated in China as a kind of special commodity, and its trade was under the strict, unified control of the People's Bank of China, the country's central bank. In the 1990s, the metal began to be used mainly for industrial purposes as its function as a currency weakened.
That's all changed now. Zhou Juqiu, deputy director of the China Nonferrous Metal Industry Association, quoted statistics as saying that annual silver consumption now stands at around 1,000 tons in China.
Zhou said that after the opening of the silver market in China, demand from the electrics and electronics, chemical reagent and chemical materials sectors increased greatly, while the consumption of silver in manufacturing photo-sensitive materials and silver wares grew moderately.
The Chinese people have traditionally loved silver jewelry and wares but have long had to use aluminum and other silver-gilded articles as substitutes. So with an eye particularly on the jewelry sector, Paul Bateman came to China in February to make researches on the great market potential and project cooperation possibilities.
Bateman is also optimistic about silver consumption in the photo-sensitive materials sector. As the third largest photo market of the world, China scores an average per-capita film consumption of only 0.1 roll, in comparison with the 3.6-roll level in developed nations.
The China Photo-Sensitive Association and the Lucky Group, a major film producer in the country, predict silver consumption for photo sensitive materials will grow at an average annual rate of about 8 percent in the 2002-2005 period. This year a total of 170 tons of silver will be used to produce color film and photo paper in China.
Attention is also paid to the electrics and electronics industry, which claims a majority 30-percent share of China's total consumption of the precious metal.
Wang Yingshan, president of Huatong Nonferrous Metal Trading Center Wholesale Market, forecast that the silver used for this sector will hit 700-800 tons this year, up from the 600 tons in 2000, and the figure will increase further to 1,000 tons in 2005, with an annual growth rate of 10 percent on average.
The first Annual China Silver Conference was jointly sponsored by the Silver Institute, China Nonferrous Metal Industry Association and the municipal government of Hohhot, with the aim of creating an opportunity for silver enterprises from all over the world to exchange information and strengthen cooperation.
(Xinhua News Agency September 12, 2002)
