China imported 836 tons of silver in March, a historic record

In March, China's silver imports reached a record level of approximately 836 tons, according to data released by the Chinese Customs Administration. This significant increase is attributed to strong demand from retail investors, who prefer small silver bars as an alternative to gold, and from photovoltaic equipment manufacturers, who have accelerated purchases ahead of the removal of export tax reductions.

In comparison, the seasonal average over the last 10 years is approximately 306 tons. Although China is the largest consumer and producer of silver in the world, analysts, such as Zijie Wu from Jinrui Futures Co., estimate that this record volume will not persist, and imports will return to normal.

Strong demand has led to rising prices in the Chinese market, encouraging traders to import silver from other countries. However, silver usage in the industrial sector faces challenges, and Beijing has promised to reduce production overcapacity in the photovoltaic equipment sector, which could diminish long-term demand.