Industrial demand for silver in China continues to be extremely strong, while domestic supplies are tightening, according to Bloomberg.

Key market signals include:

• Record backwardation in silver futures on the Shanghai exchange, indicating immediate demand outstripping supply
• Large spot premiums compared to international silver prices, reflecting a persistent local shortage

These conditions suggest that China’s silver market is under structural stress, which could influence global price dynamics if domestic demand keeps outpacing production.

For traders and investors, tight supply combined with high industrial usage implies continued volatility and potential opportunities for both futures and physical silver markets.

🔗 Source: Bloomberg