China’s silver imports reached a record in March, supported by demand from retail buyers and the solar sector. Imports rose to around 836 tonnes, based on Chinese customs data.
This level was far above the 10-year March average of roughly 306 tonnes. Earlier in the year, strong domestic demand lifted Chinese silver prices to a premium over international markets and led to arbitrage flows.
Silver prices later pulled back from their January record highs. Retail buying demand also eased.
The article was produced with the help of an artificial intelligence tool and reviewed by an editor.
We remember this time last year when China’s record silver imports in March 2025 created a significant market move. Now in April 2026, we are closely watching for signs of a repeat pattern driven by both industrial and retail demand. The key is to see if the market is setting up for another arbitrage opportunity.
The solar sector remains a primary driver for industrial demand, as China’s National Energy Administration is targeting over 230 GW of new solar installations this year. This provides a strong underlying support for silver, a critical component in photovoltaic cells. This sustained industrial consumption is a fundamental factor that was also present during the 2025 price action.
Traders should carefully monitor the premium between silver prices on the Shanghai Futures Exchange and those in London, which is currently sitting around 4-5%. While not yet at the double-digit levels seen at the peak in early 2025, this gap signals that regional demand is again outpacing international supply. This premium is the critical trigger for the arbitrage flows that can quickly move global prices.
Given the potential for a sharp upward move, buying near-term call options presents a strategy with defined risk. We saw last year how quickly retail momentum can fade after a price spike, causing a pullback. Therefore, options allow for participation in the potential upside while limiting exposure if the market reverses unexpectedly.
We also recall that implied volatility for silver options spiked by over 30% during the first quarter of 2025 as prices surged. For those expecting another significant price swing but are unsure of the direction, volatility-based plays could be effective. Strategies like long straddles might be appropriate to capture a large move in the coming weeks.
