World silver production would fall 2% due to lower production in Mexico and Peru in 2023

The world silver production extracted will fall 2% in 2023 to 820 million ounces compared to 2022 totals due to lower production from operations in the main producing countries, Mexico and Peru. However, greater production from existing mines in Bolivia and Chile will mitigate the decline to some extent, he estimated. The Silver Institute.

“Mexico production is expected to fall by 16 million ounces due to the impact of the suspension of operations at Newmont’s Peñasquito in the second and third quarters in response to a labor strike,” the institution stated. While in Peru the estimated drop is 7.4 million ounces, which is equivalent to a year-on-year contraction of 7%.

The largest silver producing countries last year were Mexico, China, Peru, Poland and Russia. Fresnillo, KGHM, Newmont, Glencore and Hindustan Zinc occupied the first places in the ranking of the largest silver producing companies.

Demand will also fall

Globally, it is expected that the total silver demand will reduce by 10% to reach 1,140 million ounces in 2023. Gains in industrial applications will be offset by losses in all other key segments. “Despite the drop, total demand remains elevated by historical standards, making the 2023 figure the second highest in the Metals Focus data series,” it says. The Silver Institute.

For its part, the industrial demand in 2023 it will reach a new annual maximum. “Key drivers of this growth are being driven by a strong green economy, including investment in photovoltaics (PV), power grids and 5G networks, as well as increased use of automotive electronics and supporting infrastructure,” noted the institution based in Washington, USA.

Demand for silver jewelry and silverware is also expected to fall 22% and 47%, respectively, to 182 million and 39 million tons this year.