India Silver Import Market -- HS 7106 Trade Data & Price Trend (Q1 2025)

India Silver Import (HS 7106) Key Takeaways

India's silver imports under HS Code 7106 in Q1 2025 reveal a market in sharp decline, with values plummeting 75% from January to March after a duty cut to 6% spurred initial stockpiling. The trade is dominated by high-value semi-manufactured silver (e.g., HS 71069220 at 799K USD/kg) alongside bulk powder, reflecting dual demand for premium and commodity-grade products. Supply chains are highly concentrated, with just a few suppliers like BOWINS SILVER CO. LTD handling 84% of import value, creating vulnerability. The UK and China lead as key origins, with the UK’s 30.7% value share signaling premium product reliance. This analysis is based on cleanly processed 2025 Q1 customs data from the yTrade database.

India Silver Import (HS 7106) Background

What is HS Code 7106?

HS Code 7106 covers silver (including silver plated with gold or platinum) in unwrought, semi-manufactured, or powder forms. This product is critical for industries like jewelry, electronics (conductive pastes), and investment (bullion), driven by stable global demand for precious metals. Its versatility in manufacturing and value retention makes it a key commodity in international trade.

Current Context and Strategic Position

In Q1 2025, India's silver import landscape saw significant policy shifts, including a reduction in customs duty from 15% to 6% under HS Code 7106 [Economic Times]. New tariff items were introduced, and restrictions on plain silver jewelry imports remain to protect domestic manufacturers [IndiaFilings]. India’s strategic role in hs code 7106 trade data stems from its dual demand as a manufacturing hub and investment market, necessitating close monitoring of regulatory updates and global price trends.

India Silver Import (HS 7106) Price Trend

Key Observations

The India Silver Import trend for HS code 7106 in Q1 2025 saw a sharp decline, with values dropping from $1.27 billion in January to $75.38 million in March. This represents a substantial quarter-over-quarter decrease, indicating significant market adjustments early in the year.

Price and Volume Dynamics

Sequential analysis reveals a steep MoM decline, with values falling by over 75% from January to February and continuing to drop into March. This trajectory suggests a rapid normalization after a potential initial surge, likely driven by inventory drawdowns or anticipatory buying ahead of policy changes, common in precious metals markets where importers often front-load purchases before duty adjustments.

External Context and Outlook

The volatility is largely explained by India's reduction of silver import duties from 15% to 6% in early 2025 [Economic Times], which may have spurred a January import spike before demand tapered off. Coupled with restrictions on plain silver jewelry imports requiring licenses until March 2026 (IndiaFilings), the hs code 7106 value trend is expected to remain subdued but stable as markets adapt to the new duty structure.

India Silver Import (HS 7106) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data for Q1 2025, India's import of HS Code 7106 is heavily concentrated in a high-value anomaly, HS Code 71069220 for semi-manufactured silver, with an extremely high unit price of approximately 799,000 USD per kilogram accounting for over 90% of the total value. This anomaly is isolated from the main analysis due to its outlier nature, while the remaining imports show a more typical structure with lower unit prices.

Value-Chain Structure and Grade Analysis

The non-anomalous imports under India's HS Code 7106 trade data fall into three groups based on form and processing. Semi-manufactured silver, like HS Code 71069290 with a unit price of 7,021 USD per kilogram, represents value-added products. Unwrought silver, such as HS Code 71069110 at 12,618 USD per kilogram, indicates higher purity grades, while powder silver under HS Code 71061000 at 318 USD per kilogram acts as a bulk commodity. This mix suggests a trade in both differentiated goods and fungible bulk materials, with unit price variations reflecting grade and processing differences.

Strategic Implication and Pricing Power

The reduction in customs duty to 6% for silver imports in 2025, as reported by [Economic Times], lowers import costs and may increase competitive pressure on bulk products like powder silver. For higher-value semi-manufactured and unwrought forms, importers can leverage product differentiation to maintain better pricing power, though overall market dynamics favor cost-sensitive strategies due to the duty cut.

Check Detailed HS Code 7106 Breakdown

India Silver Import (HS 7106) Origin Countries

Geographic Concentration and Dominant Role

In Q1 2025, the UNITED KINGDOM dominated India's Silver imports under HS Code 7106 with a 30.68% value share, indicating its role as the top source for high-value silver products. The sharp disparity between value share (30.68%) and weight share (0.02%) points to demand for premium, finished silver items like refined bullion or manufactured goods, rather than raw bulk. CHINA MAINLAND followed closely with a 29.38% value share but a higher weight share of 13.27%, suggesting a mix of higher-grade and some bulk silver, while its frequency share of 15.44% reflects frequent, possibly smaller shipments typical for just-in-time supply chains.

Origin Countries Clusters and Underlying Causes

The origin countries form three clear clusters based on trade patterns. The High-Yield Cluster includes the UNITED KINGDOM and CHINA HONGKONG, where value shares exceed weight shares significantly, driven by imports of refined or processed silver products that command higher prices. The Volume Cluster features THAILAND and GERMANY, with weight shares (19.46% and 9.45%) surpassing value shares, indicating bulk shipments of raw or lower-end silver, possibly for industrial processing. The Transactional Cluster is led by CHINA MAINLAND, with its high frequency share suggesting regular, small-lot trade, often linked to semi-manufactured items like silver paste, as noted in market reports.

Forward Strategy and Supply Chain Implications

India's reliance on the UNITED KINGDOM and CHINA MAINLAND for silver imports under HS Code 7106 requires careful supply chain management to avoid dependency risks, especially for high-value goods. The recent reduction in customs duty from 15% to 6% [Economic Times] may encourage increased volume from cost-effective sources like China and Thailand, but policy restrictions on jewelry imports necessitate compliance checks. Diversifying sourcing to include volume clusters could stabilize costs for raw silver, while maintaining ties with high-yield partners ensures access to premium products.

Table: India Silver (HS 7106) Top Origin Countries (Source: yTrade)

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India Silver (HS 7106) Suppliers Analysis

Supplier Concentration and Dominance

According to yTrade data, the India Silver Import suppliers market in Q1 2025 is highly concentrated, with a small group of high-value, high-frequency suppliers dominating 84.45% of the total import value. This cluster handles 68.89% of all shipments, indicating that the typical trade involves large, regular bulk deliveries from key partners. The majority of silver imports under HS code 7106 are driven by these frequent, high-volume transactions.

Strategic Supplier Clusters and Trade Role

The remaining supplier groups show varied roles: infrequent but high-value shipments from traders like STONEX COMMODITIES account for 15.19% of value, while frequent low-value shipments from manufacturers contribute minimally to value. The dominant cluster, represented by companies such as BOWINS SILVER CO. LTD and PROGOLD S.P.A, reflects a direct-to-factory commercial persona, where producers supply silver directly rather than through intermediaries. The profile of HS code 7106 suppliers confirms that bulk commodity trade is central, with limited agent-driven activity.

Sourcing Strategy and Vulnerability

For Indian importers, the heavy reliance on a few direct suppliers offers cost efficiency but poses supply chain risks if disruptions occur. The reduced customs duty to 6% in 2025 [Economic Times] lowers import costs, encouraging bulk purchases, but restrictions on jewelry imports require careful compliance. Diversifying sources beyond the dominant cluster could mitigate vulnerability while leveraging duty benefits.

Table: India Silver (HS 7106) Top Suppliers List (Source: yTrade)

Check Full Silver Supplier lists

Action Plan for Silver Market Operation and Expansion

Strategic Supply Chain Overview

India's Silver Import market under hs code 7106 trade data reveals a dual-nature structure. Price is primarily driven by product grade and form. High-value semi-manufactured and unwrought silver commands premium prices due to purity and processing. Bulk powder silver acts as a cost-driven commodity. The 2025 customs duty cut to 6% intensifies competition for bulk imports but supports margins on differentiated goods.

The Silver supply chain faces concentration risks. A few high-volume suppliers dominate value and volume. Key origins like the UK and China provide high-yield and volume shipments, but over-reliance creates vulnerability. India's role is both a processor of bulk silver and a consumer of premium products. Supply security and cost management are critical.

Action Plan: Data-Driven Steps for Silver Market Execution and Expansion

• Diversify your supplier base beyond the dominant cluster. Use hs code 7106 trade data to identify new, qualified producers in volume-focused countries like Thailand. This reduces dependency on a few key partners and mitigates supply disruption risks.
• Segment purchasing by product type to optimize costs. Target bulk powder silver from high-weight-share origins and premium unwrought silver from high-value-share partners. This strategy leverages the duty cut on volume while protecting margins on specialized goods.
• Monitor shipment frequency data from key origins like China. This identifies regular, smaller-lot opportunities for just-in-time inventory. It prevents capital from being tied up in large bulk orders and improves cash flow.
• Conduct compliance checks on all high-value shipments. Verify restrictions on jewelry imports to avoid customs delays. This ensures smooth clearance and protects against financial penalties or seizure of goods.

Take Action Now —— Explore India Silver Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Silver Import 2025 Q1?

India's silver imports under HS Code 7106 dropped sharply from $1.27 billion in January to $75.38 million by March 2025, likely due to a duty cut from 15% to 6% that triggered an early surge followed by demand normalization.

Q2. Who are the main origin countries of India Silver (HS Code 7106) 2025 Q1?

The UNITED KINGDOM (30.68% value share) and CHINA MAINLAND (29.38%) dominated imports, with the UK supplying high-value refined silver and China providing a mix of bulk and semi-processed products.

Q3. Why does the unit price differ across origin countries of India Silver Import?

Price gaps reflect product differentiation: semi-manufactured silver (e.g., HS Code 71069290 at $7,021/kg) commands premiums, while bulk powder silver (HS Code 71061000 at $318/kg) trades at commodity rates.

Q4. What should importers in India focus on when buying Silver?

Importers should diversify beyond dominant suppliers (84.45% value share) to mitigate supply risks while leveraging the 6% duty for bulk purchases, balancing cost and reliability.

Q5. What does this India Silver import pattern mean for overseas suppliers?

High-value suppliers (e.g., UK) retain pricing power for refined silver, while bulk-focused partners (e.g., China, Thailand) must compete on cost amid India’s duty-driven volume incentives.

Q6. How is Silver typically used in this trade flow?

India imports silver in forms like unwrought bars (high purity), semi-manufactured products (value-added), and powder (bulk commodity), catering to jewelry, industrial, and investment demand.

Detailed Monthly Report

India HS7106 Import Snapshot 2025 JAN

India HS7106 Import Snapshot 2025 FEB

India HS7106 Import Snapshot 2025 MAR