India silver import curbs spark shortages, push premiums to six-month high
Higher duties (15% from 6%) and import curbs have crushed inflows—46.8 tons in May vs 534.3 tons a year earlier—driving domestic premiums above $6.5/oz, over 10% past benchmark. Jewellery and coin retailers now lean on Hindustan Zinc as ETF-released metal dries up.
What happened
retail-company · India's silver import curbs and higher duties have created domestic shortages, pushing premiums to a six-month high. Impacts jewellery and coin
Key facts
- premiums $6.5/oz, >10% above benchmark
- imports 46.8 tons in May vs 534.3 tons year earlier
- import duty raised to 15% from 6%
- 80% of demand met via imports
Why this matters
Tightening silver access favors vertical integration or supply agreements with domestic refiners to hedge against sustained import restrictions and premium volatility.
What to watch
- June-July import tonnage vs May's 46.8 tons
- Domestic premium moving above $7 or back below $4/oz
- Any government/CBIC statement on duty revision or curb relaxation
- Hindustan Zinc silver output and allocation to retailers
- ETF silver holdings redemptions/releases
- Rise in smuggling seizures or scrap-import reclassification
- Lock forward supply agreements with Hindustan Zinc and domestic refiners to secure allocation
- Reprice coin and jewellery inventory to reflect premium; hedge silver exposure via futures
- Diversify SKU mix toward gold and lower-silver-content pieces to protect margins
- Monitor grey-market and scrap-recycling inflows as alternative supply
- Stress-test festive-season inventory needs against continued import curbs