Latest news with #industrialdemand
CNA
5 days ago
- Business
- CNA
Silver surges past $35/oz level to hit a more than 13-year high
Silver has soared to the key milestone of $35 per ounce, reaching its highest level in more than 13 years, propelled by robust industrial demand and ongoing supply deficits, analysts said. Spot silver rose 2.5 per cent to $35.82 per ounce as of 1347 GMT, having touched its highest level since February 2012 at $36.08. "We have been expecting silver to close its performance gap with gold for some time. The metal has firm fundamentals, including being in a supply deficit and industrial demand being robust," said Nitesh Shah, commodities strategist at WisdomTree. The gold-silver ratio, which reflects how many ounces of silver are needed to buy an ounce of gold, currently stands around 94 - down from 105 in April, when it reached its highest level since May 2020. A lower gold-silver ratio means silver is gaining value relative to gold. Given silver's recent underperformance against gold, "it looks to me that there could be some ratio trading going on now that it's dipped below the 100 level," StoneX analyst Rhona O'Connell said. ROBUST INDUSTRIAL DEMAND Known both as a safe-haven asset and a vital industrial metal, silver has surged 24 per cent so far in 2025. Industrial uses account for more than half of global silver demand, according to the Silver Institute industry association. That demand has remained robust despite broader industrial headwinds in the past few years, said Shah, due in part to its role in solar and electrification. "With all precious metals in positive territory, I guess they are benefiting from similar factors - weaker US economic data supporting the case of rate cuts, which should support industrial demand at a later stage," said Giovanni Staunovo, UBS analyst. Meanwhile, gold has surged about 29 per cent in 2025, shattering records multiple times on safe-haven demand, expectations of U.S. rate cuts and robust central bank purchases. SUPPLY DEFICIT AND LONG-TERM OUTLOOK Silver is facing its fifth consecutive year of a structural market deficit, although the deficit is expected to narrow by 21 per cent in 2025, according to the Silver Institute industry association. "As silver is largely a by-product of mining for other metals, the elevated price will not necessarily drive a lot of new supply. So supply deficit markets may be maintained for longer," Shah added. "In the long-term, rising demand for silver as an industrial material means prices could reach $40 or even $50 per ounce," said Fawad Razaqzada, market analyst at City Index and
Reuters
5 days ago
- Business
- Reuters
Silver surges past $35/oz level to hit a more than 13-year high
June 5 (Reuters) - Silver has soared to the key milestone of $35 per ounce, reaching its highest level in more than 13 years, propelled by robust industrial demand and ongoing supply deficits, analysts said. Spot silver rose 2.5% to $35.82 per ounce as of 1347 GMT, having touched its highest level since February 2012 at $36.08. "We have been expecting silver to close its performance gap with gold for some time. The metal has firm fundamentals, including being in a supply deficit and industrial demand being robust," said Nitesh Shah, commodities strategist at WisdomTree. The gold-silver ratio, which reflects how many ounces of silver are needed to buy an ounce of gold, currently stands around 94 - down from 105 in April, when it reached its highest level since May 2020. A lower gold-silver ratio means silver is gaining value relative to gold. Given silver's recent underperformance against gold, "it looks to me that there could be some ratio trading going on now that it's dipped below the 100 level," StoneX analyst Rhona O'Connell said. Known both as a safe-haven asset and a vital industrial metal, silver has surged 24% so far in 2025. Industrial uses account for more than half of global silver demand, according to the Silver Institute industry association. That demand has remained robust despite broader industrial headwinds in the past few years, said Shah, due in part to its role in solar and electrification. "With all precious metals in positive territory, I guess they are benefiting from similar factors - weaker US economic data supporting the case of rate cuts, which should support industrial demand at a later stage," said Giovanni Staunovo, UBS analyst. Meanwhile, gold has surged about 29% in 2025, shattering records multiple times on safe-haven demand, expectations of U.S. rate cuts and robust central bank purchases. Silver is facing its fifth consecutive year of a structural market deficit, although the deficit is expected to narrow by 21% in 2025, according to the Silver Institute industry association. "As silver is largely a by-product of mining for other metals, the elevated price will not necessarily drive a lot of new supply. So supply deficit markets may be maintained for longer," Shah added. "In the long-term, rising demand for silver as an industrial material means prices could reach $40 or even $50 per ounce," said Fawad Razaqzada, market analyst at City Index and
Reuters
14-05-2025
- Business
- Reuters
Berger Paints India tops quarterly earnings view, bets on industrial strength
May 14 (Reuters) - Berger Paints India ( opens new tab reported quarterly results above expectations on Wednesday, with strong industrial demand cushioning retail weakness. Its shares rose 2.5% in the afternoon trading. "The tough market conditions continued into the fourth quarter with muted urban demand and increased competitive intensity," said CEO Abhijit Roy. "The industrial segment... saw resilient performance, which bodes well for us in the months ahead." Consolidated net profit rose to 2.62 billion rupees ($30.7 million) during January to March, up 18% on year. Analysts on average had expected a profit of 2.43 billion rupees, per data compiled by LSEG. Revenue from operations rose over 7% to 27.04 billion rupees, surpassing estimates. For further earnings highlights, click KEY CONTEXT Indian paintmakers have been battling weak consumer spending sentiment for a few quarters amid increased competition in the sector following the entry of Grasim Industries ( opens new tab. Analysts have flagged that players with a more diversified customer base, such as Berger, are better-placed in a soft retail environment. Last week, market leader Asian Paints ( opens new tab forecast that the worst demand scenario in decades is likely to persist in the near term, while peer Kansai Nerolac ( opens new tab posted a surprise profit fall. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JANUARY-MARCH STOCK PERFORMANCE -- All data from LSEG -- $1 = 85.2675 Indian rupees
