China’s silver imports: China’s silver imports have reportedly hit an eight-year high in the first two months of 2026 as importers fed a surge in industrial and investment demand.
China pulls in over 790 tons in first two months
The world’s biggest buyer pulled in over 790 tons in the first two months, including nearly 470 tons in February, the highest ever for that month, Bloomberg reported, citing Chinese customs data.
Strong demand has pushed local prices well above international benchmarks, whittling down already-low exchange stockpiles and hoovering up metal from abroad, the report added.
Silver prices have never had such a volatile start to a year, soaring about 70 per cent on a wave of speculative buying from China and elsewhere, before abruptly giving up their gains at the end of January. The strong import figures suggest physical consumption in China has been sustained despite shifts in trading flows, the Bloomberg report said.
Solar industry consumes about fifth of annual supply
Demand has come from both retail investors piling into silver bars, an alternative to increasingly pricey gold, and solar manufacturers front-loading production ahead of the removal of export tax rebates on April 1. The solar industry consumes about a fifth of annual supply, and is overwhelmingly located in China, the Bloomberg report added.
Demand for physical bars is very strong, and solar cell manufacturers “are going gangbusters,” said Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX Group Inc. “At the same time, inventories in Chinese exchanges have been falling lower and lower, which has its own psychological effect.”
Much of the metal flowed through Hong Kong
Much of the metal has flowed through Hong Kong, a gateway for precious metals headed to the mainland, as traders sought to profit from an attractive arbitrage opportunity.
In the first two months, prices in the territory for the large silver bars traded by banks have attracted a premium of as much as $8 an ounce, when they usually trade at a discount to the benchmark in London, said Stanley Cheung, managing director of AC Precious Metals Refinery Ltd.
China’s lofty imports have yet to disrupt the London market, thanks to a record inflow of silver into the global trading hub following an historic squeeze last year. Less silver held in exchange-traded funds around the world, which have dropped this year by more than 1,900 tons, has also freed up more metal.
(With inputs from Bloomberg)
