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

China's silver imports surged to nearly 800 tonnes in January and February 2026, marking an eight-year high as robust industrial and investment demand boosted local prices and drained domestic stockpiles. In February alone, imports reached a record 470 tonnes year-over-year, supported by local premiums significantly above global benchmarks, incentivizing foreign silver purchases. Silver prices in 2026 have experienced extreme volatility, hitting a nominal peak of $121.62/oz at the end of January before collapsing nearly 50% to $64/oz by early February. Goldman Sachs analysts attribute this turbulence not to a global supply shortage but to China's export restrictions and localized supply bottlenecks, which exacerbate price swings and market dislocations. China's new export controls require official approvals for outbound silver shipments, further fragmenting the global silver market by encouraging market participants to hoard local stockpiles rather than share global inventories. This fragmentation risks reducing liquidity and amplifying localized price volatility, creating a more inefficient and volatile market structure through 2026. The evolving Chinese import-export dynamic poses key risks for traders, introducing upside potential amid tight local premiums but also heightened price instability, with the market likely to remain vulnerable to abrupt swings driven by policy shifts and inventory flows.