China imported approximately 836 tonnes of silver in March, the highest monthly total ever recorded, as demand from the country’s solar manufacturing sector and retail investors simultaneously overwhelmed domestic supply, according to Chinese customs data reported by Bloomberg.
The March figure is 78% above February’s 470 tonnes — itself a record for that month — and runs 173% above what March typically sees — the 10-year seasonal average for the month sits at around 306 tonnes. Year-to-date imports through March now stand at approximately 1,626 tonnes, the highest on record for the first quarter.
Solar panel manufacturers — China dominates global solar production and the sector consumes a significant share of annual silver supply — accelerated purchases ahead of the removal of an export tax rebate on April 1, front-loading demand into the first quarter. Retail investors simultaneously piled into silver bars as an alternative to gold, which has become increasingly expensive.
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The combination, hitting a market already running low on exchange stockpiles, creates the conditions for sharp and sudden price dislocations.
That vulnerability was on full display earlier this year. Silver hit a nominal all-time high of $121.62 per ounce on January 29 before collapsing to approximately $64 by February 6 — a decline of nearly 47% in eight days.
The extreme swing reflected regional supply bottlenecks rather than a global shortage, according to Goldman Sachs analysts Lina Thomas and Daan Struyven, who warned in January that China’s new export restrictions on silver — requiring official approval for all outbound shipments — risked fragmenting the global market and creating conditions for repeated short squeezes.
Chinese domestic silver prices have traded consistently above international benchmarks through 2026, drawing metal from overseas markets and depleting exchange inventories.
The record import figures confirm that physical demand in China has remained intact even as prices swung violently, suggesting the buying is being driven by underlying industrial and investment needs rather than speculative positioning alone.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
