🇨🇳 BREAKING: Latest CEIC data shows that physical silver inventories at the Shanghai Futures Exchange (SHFE) have fallen sharply — from about 482 tons down to ~455.06 tons — marking a significant decline in available silver stocks. (CEIC data)
📉 What this means:
• SHFE inventory drawdowns signal tightening physical silver supply in China, one of the world’s most important silver markets.
• China’s strong industrial and investment demand — especially for solar, electronics, and other high-tech uses — is outpacing supply and draining exchange stocks.
• This drawdown comes amid broader global supply constraints and rising physical premiums in Asia, where buyers are willing to pay significantly more than paper futures prices for real delivery.
📊 Why traders care:
• Declining physical inventories can tighten markets, contributing to higher spot prices and premium divergences between physical Asian markets and Western futures markets.
• When exchange stocks shrink, it reflects actual physical demand rather than speculative paper trading and can signal potential long-term structural scarcity.
Simple takeaway:
Silver is physically tightening in China’s biggest exchange — fewer tons on hand may mean higher spot demand and price tension ahead.
