bullish for ccu, page-38

For what its worth...

Silver needs China to destock before prices can rally,
Standard Bank analyst Walter de Wet says in a note. He notes much of the tightness in the silver market since 2008 has come from China flipping from a net exporter to a net importer of the metal. "As long as China does not import silver, the price is unlikely to rally on a sustainable basis." He adds should imports stay low for a few months and stock levels deplete, "we do believe that China will have to come back and restock."

The restocking could provide enough support for the metal to push prices above $35/oz, towards $40/oz. he predicts; "we doubt silver could trade above $35/oz this quarter, but we do look for a push above this level." Spot silver is at $33.30/oz, up 20 cents from its previous close.

dj news 2:16pm