Silver prices in Shanghai surged on February 11, 2026, as tightening domestic supplies continued to distort the Chinese market even after global prices steadied. Spot silver traded at ¥591.61 per troy ounce, up ¥33.82 (+6.06%) in early trade, reflecting persistent backwardation and strong demand for immediate deliveries across China’s exchanges.
On a per-gram basis, silver stood at ¥19.02, while per kilogram pricing climbed to ¥19,020.69, underscoring broad strength across retail and wholesale channels. The rally comes as inventories on the Shanghai Futures Exchange (SHFE) and Shanghai Gold Exchange (SGE) remain near decade-low levels.
China’s Silver Market Under Pressure
According to Bloomberg, international silver prices have stabilized after a sharp correction, but China’s domestic market continues to face an acute supply squeeze. Traders report that near-term contracts on SHFE are trading at record premiums to later deliveries, signaling a strong preference for immediate physical metal.
The front-month Shanghai contract has surged relative to deferred months, creating pronounced backwardation — a classic indicator of tight physical supply. Domestic producers are struggling to clear backlogs, while traders scramble to source deliverable inventory ahead of Lunar New Year holidays beginning February 16.
Short sellers on the Shanghai Gold Exchange have reportedly paid deferral fees since late December to avoid delivery obligations, highlighting just how scarce physical silver has become in China’s vault system.
Investment and Solar Demand Driving Tightness
Demand remains elevated from two major fronts: retail investors and industrial users. In Shenzhen’s Shuibei bullion hub, investment bars are reportedly selling out rapidly whenever new stock arrives, often at premium pricing above exchange rates.
Meanwhile, China’s solar manufacturers are accelerating production ahead of April 1 changes to export tax rebates. Silver, a critical component in photovoltaic panels, is being purchased aggressively during price pullbacks. This industrial front-loading is amplifying tightness just as inventories have already been depleted by speculative buying earlier this year.
Stockpiles at SHFE-linked warehouses have reportedly dropped to levels last seen more than a decade ago, adding structural strain to the supply chain.
Historic Volatility: From Rally to Selloff
Silver experienced extreme volatility in recent weeks. After surging more than 60% earlier in the year amid speculation and geopolitical uncertainty, prices retraced sharply at the end of January. Much of that rally has now been erased globally, but China’s domestic market remains distorted due to localized supply constraints.
Open interest on SHFE has dropped to its lowest level in more than four years, suggesting speculative activity is cooling ahead of the week-long holiday. However, the premium for prompt delivery indicates that physical tightness remains unresolved.
Shanghai Silver Price Snapshot — Feb 11, 2026
Silver per Ounce: ¥591.61 (+6.06%)
Silver per Gram: ¥19.02
Silver per Kilogram: ¥19,020.69
30-Day Change: −7.45%
6-Month Change: +101.65%
1-Year Change: +138.47%
The contrast between short-term weakness and longer-term strength highlights how rapidly positioning has shifted. Despite recent corrections, silver in Chinese yuan remains up more than 100% over six months and nearly 140% year-over-year.
What Could Ease the Squeeze?
Analysts suggest the only near-term relief would come from increased smelter output during the Lunar New Year period, though seasonal slowdowns typically limit production increases. Until inventories rebuild meaningfully, Shanghai’s market structure may continue to trade at a premium to international benchmarks.
For investors tracking XAG/CNY, the key signals to watch include SHFE weekly inventory data, solar manufacturing output trends, and open interest flows as traders return from the holiday break.
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