- New insight from The Silver Institute counts the global silver demand to grow annually 8% to 1.112 billion ounces in 2022
- Government commitments to achieve carbon neutrality is a driving force for growth of PV, hence the demand for silver from this segment is likely to increase to a record high
- There may be a supply shortfall of silver in 2022 of 20 million ounces, however it will be modest in absolute terms
In 2022, The Silver Institute forecasts global silver demand to grow to a record high of 8% YoY to 1.112 billion ounces, with ‘record PV installations’ expected to lift demand in this segment to an all-time high.
“The increase will be driven by record silver industrial fabrication, which is forecast to improve by 5%, as silver’s use expands in both traditional and critical green technologies,” according to the institute.
For the solar industry, the institute believes government commitments to carbon neutrality will continue to drive green energy growth which would mean high demand from the PV industry that uses paste made with silver as electrical contacts for solar cells. Bloomberg New Energy Finance (BloombergNEF) forecasts 228 GW DC new solar PV capacity to be installed in 2022, and under right conditions it may also grow to 252 GW DC (see BloombergNEF: 228 GW DC New Solar In 2022).
Annual average prices for 2022 are forecast by the institute to be around $24.80 per ounce, which will be 1% lower than 2021’s average price of $25.14 per ounce. It added, “Even so, it will still represent a historically high annual average.”
It also notes that in 2021 the silver market experienced less demand than available supply for the 1st time in 6 years, but in 2022 it is expected to record a supply shortfall of 20 million ounces, nonetheless it will be relatively modest in absolute terms.