China silver imports hit record high – nearly 800 tonnes – in January and February

China's silver imports surged to an eight-year high, exceeding 790 tonnes in January and February 2026, with February alone hitting a record 470 tonnes. This surge reflects soaring industrial and investment demand, which has pushed local silver prices well above global benchmarks and drained domestic exchange reserves. The market has experienced extreme volatility in early 2026, with spot silver reaching an all-time nominal high of $121.62/oz on January 29 before plunging to $64/oz by February 6. Goldman Sachs analysts attribute this to supply bottlenecks caused by China’s new export controls, which require official approval for outbound silver shipments. These measures exacerbate local shortages and distort the market, not due to a global silver deficit but fragmented regional inventories. Goldman warns that restricted supply and tighter inventories could lead to increased market fragmentation, with participants hoarding stockpiles rather than sharing globally, thus increasing liquidity risk and sharp localized price swings. This suggests ongoing elevated volatility risk and potential for pronounced market dislocations in silver trading through 2026, with key focus on China's policies and inventory flows.