The silver rush in China.

Illustrative image - Photo: Bloomberg.

China's silver imports from overseas reached an eight-year high in early 2026, as importers scrambled to meet surging industrial and investment demand. The sustained high domestic demand pushed domestic silver prices well above international market prices, depleting inventories at exchanges and prompting overseas purchases of the metal.

According to data from China's General Administration of Customs, the world's largest silver importer imported over 790 tons of silver in the first two months of 2026, with nearly 470 tons recorded in February alone, a record high for that month. The import figures indicate that physical consumption in China remains stable despite shifts in trading flows. The silver market recently experienced unprecedented volatility, with prices rising by approximately 70% due to speculative buying before plummeting at the end of January.

Current demand comes from two main groups: individual investors seeking silver as an alternative to the expensive gold, and solar panel manufacturers ramping up production ahead of the Chinese government's April 1st repeal of export tax rebates. The solar energy industry, with much of its manufacturing located in China, currently accounts for about 20% of the total annual silver supply. Rhona O'Connell, an expert at market analysis firm StoneX Group Inc., notes that demand for silver bullion is currently very strong while inventories at Chinese exchanges continue to decline.

Large volumes of metal have been circulating through the Hong Kong Special Administrative Region (China), the gateway to the Chinese market, as traders seek to capitalize on arbitrage opportunities. Stanley Cheung, CEO of AC Precious Metals Refinery Ltd, said that in the first two months of the year, the price of large silver bars there was as much as $8 per ounce higher than the benchmark price in the London market.

Regarding future prospects, Yuan Zheng, an expert from Henan Jinli Gold and Lead Group Co., noted that price differentials in China are showing signs of cooling down and demand from the solar energy sector is slowing as the deadline for tax policy changes approaches. The market is shifting to a short-term oversupply situation.

However, experts warn that this scenario could change rapidly if silver prices continue to experience new surges, as individual investors tend to chase market gains. Furthermore, statistics show that exchanges from New York to Shanghai are recording lower-than-long-term average inventory levels, indicating that the metal is still experiencing localized shortages.

Source: https://vtv.vn/con-sot-bac-tai-trung-quoc-100260320160111423.htm