China's March silver (unwrought silver ingots with purity ≥99.99%, HS code 71069110) imports reached 398.62 mt, up 93% MoM, fulfilling expectations of rising silver ingot imports. Cumulative imports from January to March 2026 totaled 639.91 mt, surging 5,346% from 11.75 mt in the same period of 2025. Historical Comparison: Similarities and Differences Between Two Import Windows Historically, in 2023, surging PV demand widened silver price spreads in and outside China, and silver imports grew significantly (imports in June 2023 surged 5,329%). The similarity between this round and the historical pattern lies in the short-term surge in PV industry demand — in 2023, it was driven by the scaled-up commissioning of silver powder and silver paste capacity, while in 2026, it was driven by PV export rush stockpiling. Both were underpinned by rigid demand for industrial physical silver. The difference is that in 2026, precious metals experienced a rare bull market driven by both industrial demand and interest rate cut cycles. Retail investment demand exacerbated industrial raw material shortages, and China's spot silver ingot market saw significant premiums, boosting physical import profitability. In addition to silver ingots, silver-containing products and crude silver raw materials also entered China in large volumes as semi-manufactured products, which were then processed into silver ingots for circulation. Drivers of the Import Surge This Round 1. PV Export Rush Stockpiling Solar cell and module manufacturers needed to complete order deliveries before the export tax rebate cancellation on April 1. Intermediate processing segments stockpiled large volumes of raw materials in Q1, with certain manufacturers being the core drivers of the industrial import surge. 2. Retail Investment Demand Against the macro backdrop of global interest rate cuts, US debt crisis concerns, and safe-haven demand in Q1, gold and silver became important asset allocation options, with silver gaining popularity as a "gold alternative." After gold prices repeatedly hit new highs, small-denomination investment silver bars were heavily traded as alternatives to high-priced gold investments. 3. Sustained Arbitrage Window Domestic silver prices, driven by robust demand, were significantly higher than London spot prices. Stable SHFE silver premiums prompted global traders to ship silver to China for arbitrage. Some silver ingots exported through China's processing trade were not shipped to Europe or the US but were instead re-imported by traders directly into the Shenzhen market, forming a unique "export-to-domestic sales" pathway. Q2 Outlook: Pulse-Like Rally Fades Entering Q2, the explosive import growth is expected to be unsustainable. Although China's silver prices still carried a premium over London, physical demand and spot premiums had shifted, with some traders' imported silver ingots already experiencing sluggish sales in late March. The demand side weakened simultaneously. Both industrial and investment demand in China declined, and the spot market softened further. After the PV export rush ended, silver nitrate manufacturers' purchasing enthusiasm dropped sharply; silver prices moving sideways and uncertainty over Middle East conflicts cooled investment enthusiasm, with funds previously flowing into the precious metals market redirected to high-momentum markets such as the US dollar, US Treasuries, and crude oil. China's silver ingot market transitioned from "scarce supply" in April to "trading at discounts with no takers," and as month-end approached, suppliers were forced to cut premiums for bulk shipments or transfer inventory to participate in SHFE deliveries. Profit margins were sharply compressed. The spot premiums, which peaked at 3,650 yuan/kg in February, had pulled back to near parity by April. Some suppliers sold at discounts due to cash flow needs, import silver ingot profits declined significantly, and the arbitrage window disappeared. Overall, the record-breaking silver imports in Q1 were a "pulse-like" rally driven by both retail investment fever and PV export rush stockpiling. As both drivers faded simultaneously, combined with assessments of actual trade market orders, imports in April are expected to pull back.

China's imports of silver (unwrought silver ingots with purity ≥99.99%, HS code 71069110) reached 398.62 mt in March, up 93% MoM from February, fulfilling expectations that silver ingot imports would maintain their upward momentum. Total silver imports from January to March 2026 reached 639.91 mt, up 5,346% YoY compared with 11.75 mt in Q1 2025. Historically, against the backdrop of a sharp increase in demand from China's PV industry in 2023, the price gap between the Chinese and international silver markets gradually widened, and silver imports also surged significantly. () The similarity between this round of silver ingot import window opening and the historical one lies in the short-term surge in PV industry demand — 2023 marked the initial large-scale commissioning of silver powder and silver paste capacity, while 2026 saw short-term stockpiling demand driven by the PV export rush. Behind both import windows was rigid demand for physical silver in industrial production. The difference, however, is that in 2026, precious metals experienced a rare bull market driven by both industrial demand and the interest rate cut cycle, with retail investment demand further tightening already scarce industrial raw materials. As a result, significant spot premiums emerged in China's spot silver ingot market, boosting profits from physical imports. It is understood that in addition to silver ingots, silver-containing products and crude silver raw materials also entered the Chinese market in large quantities as semi-manufactured products for further processing into silver ingots and market circulation. Specifically, the driving factors behind this round of import surge were: 1. PV industry export rush stockpiling Solar cell and module manufacturers needed to complete order deliveries before the export tax rebate cancellation on April 1, leading to massive raw material stockpiling by midstream processing firms in Q1, with some individual manufacturers being the core drivers of the industrial import surge. 2. Retail investment demand: Against the macro backdrop of global interest rate cuts, US debt crisis concerns, and safe-haven demand in Q1, gold and silver became important asset allocation options, with silver gaining popularity as a "gold alternative." After gold prices repeatedly hit new highs, small-denomination investment silver bars were heavily traded as an alternative to high-priced gold. 3. Sustained arbitrage window Driven by robust demand, Chinese silver prices were significantly higher than London spot prices. With stable SHFE silver premiums, global traders were incentivized to ship silver to China for arbitrage. Even silver ingots exported through China's processing trade were not shipped to Europe or the US but were instead re-imported by traders directly into the Shenzhen market, forming a unique "export-to-domestic-sales" pathway. Q2 outlook: Entering Q2, the explosive growth in silver ingot imports is unlikely to sustain. Although Chinese silver ingots still carry a premium over London prices, demand for physical silver ingots and spot premiums have changed, with some traders' imported silver ingots already experiencing sluggish sales since late March. On one hand, domestic industrial and investment demand declined simultaneously, and the spot market weakened further. After the PV export rush orders ended, silver nitrate manufacturers' purchasing enthusiasm dropped sharply. Additionally, as silver prices moved sideways and uncertainties from Middle East conflicts dampened precious metals investment sentiment, funds that had previously flowed into the precious metals market shifted back to high-momentum markets such as US dollar, US Treasuries, and crude oil. Chinese silver ingots gradually transitioned from "hard to find" in April to "trading at discounts with no buyers." Approaching month-end, suppliers began lowering premiums to offload inventory or transfer stock for SHFE delivery. On the other hand, import profit margins were significantly compressed, mainly because spot premiums, which peaked at 3,650 yuan/kg in February, had pulled back to near parity by April. Some suppliers even sold at discounts due to cash flow needs, causing import silver ingot profits to decline sharply and the arbitrage window to close. Overall, the record-breaking silver imports in Q1 this year were a "pulse-like" event driven by both retail investment enthusiasm and PV stockpiling rush. As both driving factors fade simultaneously, combined with an assessment of actual import order performance in the trade market, imports in April are expected to pull back.

This week, the premium in the silver ingot market continued to decline, consumption remained weak, registered warrants and bank floor-pricing gradually became the mainstream operations of suppliers, and silver ingot social inventory increased significantly.

[Price Review] Middle East geopolitical concerns resurfaced mid-week, putting precious metal prices under pressure. US-Iran ceasefire negotiations remained in a prolonged deadlock, as the US unilaterally announced indefinite ceasefire was not recognized by Iran, which stated explicitly that negotiations would not proceed as long as the US maintained its naval blockade. Both sides continued to maintain military readiness and shipping blockade measures. Whether subsequent negotiations can resume and whether there is escalation risk will continue to dominate global market risk appetite and energy price fluctuations, in turn significantly impacting silver price trends. In the short term, Middle East developments remain the core variable, but after multiple extreme stress tests, precious metals showed enhanced resilience, and declining geopolitical tail risks may suggest limited pullback room. However, sluggish industrial demand persisted and the spot market remained in sustained surplus. Gold/silver ratio, as of April 23, the LBMA gold/silver ratio stood at 61. [Key Data] Bearish: US March CPI rose 0.9% MoM and 3.3% YoY, hitting the highest level since 2024. The IMF cut its 2026 global economic growth forecast by 0.2 percentage points to 3.1%, warning that if the Middle East conflict continues to escalate, global growth could further slow to 2.5%. The US labor market showed stronger-than-expected resilience, with initial jobless claims for the week ending April 11 falling to 207,000, the largest single-week decline since February, significantly below market expectations of 215,000. Eurozone March harmonized CPI final YoY reading was unexpectedly revised up to 2.6%, with a sharp 1.3% MoM increase, reflecting persistent core inflation stickiness. Bullish: US March PPI rose 4.0% YoY, the highest since February 2023 but significantly below market expectations of 4.6%; MoM up 0.5%, well below the expected 1.1%, with core PPI up only 0.1% MoM, missing expectations of 0.5%. Dovish divergence persisted within the US Fed, with some officials believing multiple interest rate cuts remain possible this year, emphasizing that energy price shocks are one-off events, preserving easing expectations for the market. US economic slowdown concerns emerged, as the IMF simultaneously cut the US 2026 growth forecast to 1.8%, and market expectations for the US Q1 annualized GDP preliminary reading pulled back significantly from the prior value. Key data and macro events to watch next week include: April 24: US April one-year inflation expectations final, US April Markit manufacturing and services PMI preliminary, Eurozone April Markit manufacturing PMI preliminary. April 29: US Fed April FOMC rate decision and policy statement, Fed Chairman Powell's press conference. April 30: US initial jobless claims for the week ending April 26, US 2026 Q1 real GDP annualized QoQ preliminary, US March core PCE price index, Eurozone Q1 GDP preliminary and March unemployment rate. May 2: US April nonfarm payrolls report. [Price Forecast] The trading logic in the precious metals market recently still revolves around uncertainties arising from the recurring Middle East geopolitical conflicts, inflation concerns triggered by high oil prices, US Fed monetary policy expectations and Fed Chairman transition, economic stagflation, recession and financial market risks, etc. On the China fundamentals side, downstream consumption remained sluggish, just-in-time procurement demand from silver nitrate, silver powder, and silver paste enterprises showed no improvement, the upward trend in spot silver ingot social inventory was difficult to reverse, and the mainstream spot transaction discount in the market is expected to continue declining. Next week, silver price movements remain full of uncertainties amid recurring geopolitical conflicts, and silver prices are expected to continue in a range-bound consolidation pattern.

[Price Review] Silver prices continued to weaken early this week amid the fermentation of Trump's speech from last week, but on Wednesday (April 8), supported by the US-Iran ceasefire agreement and a weaker US dollar, silver prices began to rebound, surging nearly 5% on April 8 alone. Short-term capital momentum, investment demand, and industrial demand had not recovered, with strong wait-and-see sentiment among market traders. Downstream transactions were still dominated by significantly reduced premium prices, and precious metal price gains remained relatively limited. Gold/silver ratio, as of April 8, the LBMA gold/silver ratio stood at 62, maintaining a fluctuating trend in the short term. [Key Data] Bearish: US March seasonally adjusted non-farm payrolls came in at 178,000, above expectations and the previous value US March unemployment rate was reported at 4.3%, below expectations and the previous value US EIA crude oil inventory for the week ending April 3 was 308.1, above expectations and the previous value US API crude oil inventory for the week ending April 3 was above expectations and the previous value On April 7, the US and Iran reached a ceasefire agreement, but Trump threatened that any country providing military weapons to Iran would be immediately subject to a 50% tariff. Data and macro news releases to watch next week include: On April 10 (Friday), the US is set to release March CPI data. Affected by energy price surges caused by the Iran war, the market widely expects inflation to rise significantly. Geopolitics, Iranian Parliament Speaker Ghalibaf will lead an Iranian delegation to negotiate with the US in Islamabad, Pakistan, with the US side led by Vice President Vance. Pakistani Prime Minister Shehbaz invited both the Iranian and US delegations to further negotiate in Islamabad on April 10 to reach a final agreement resolving all disputes. Regarding the Strait of Hormuz situation, cracks appeared in the US-Iran ceasefire agreement, with Iran claiming three key provisions were violated, and the Strait of Hormuz has been closed again. [Price Forecast] In the short term, the trajectory of the US-Iran conflict remains the primary factor determining whether silver prices will sustain the rebound, with insufficient support from short-term industrial demand and investment demand. China fundamentals side, silver ingot spot cargo had shown a slight surplus and inventory buildup trend. Due to relatively pessimistic expectations for the PV industry in April, just-in-time procurement demand for silver nitrate, silver powder, and silver paste enterprises declined. As the SHFE April delivery approaches, suppliers showed a notably increased intention to deliver and liquidate, and the upward trend in silver ingot social inventory is likely to continue. Although silver prices next week may be boosted by the ceasefire and a weaker US dollar, the overall in the doldrums situation for precious metals has not been fully reversed. Spot transaction expectations remain at a slight premium or shifting to parity, and close attention should continue to be paid to changes in geopolitical conflicts and their impact on market sentiment and capital flow adjustments.

Construction Content The project is planned to build a production site for PV and electronic-grade new materials centered on high-purity silver powder and silver paste, supported by intensive precious metal processing and the development of cultural and creative derivative products. Main products include high-purity silver powder (200 mt/year), silver ingots (200 mt/year), PV silver paste (200 mt/year), and silver jewelry cultural and creative products (200 mt/year), with total output value exceeding 9 billion yuan. The technology process adopts efficient electrorefining, with silver purity reaching above 99.995% (up to 6N grade), supporting high-end applications such as semiconductor bonding wires and superconducting materials.

DKEM (300842.SZ) reported attributable net profit of -276 million yuan in 2025, down 176.80% YoY, mainly due to fluctuations in raw material silver powder prices and the impact of non-recurring gains and losses. The company recorded operating revenue of 18.046 billion yuan, up 17.56% YoY; net profit excluding non-recurring items was 163 million yuan, down 62.78% YoY. The board of directors proposed not to distribute cash dividends. Operationally, full-year sales of PV conductive paste were 1,829.16 mt, down 10.23% YoY, of which N-type TOPCon battery paste accounted for 95.72%. The company will continue to increase R&D in N-type battery paste technology to consolidate its industry-leading position.

China’s silver prices weakened this week, and the price spread between SGE TD prices and the SHFE April contract continued to narrow sharply. Imported silver ingots kept flowing into the market, but spot transactions turned noticeably sluggish in late March, with suppliers continuously lowering spot premiums to sell off inventory. As orders for PV silver powder and silver paste declined, silver nitrate enterprises generally said that after current order deliveries are completed, renewals of new orders will decrease, so raw material silver ingot procurement volume generally fell this week. As both silver prices and spot premiums showed signs of weakening, silver nitrate and other downstream enterprises mostly stayed cautious amid fears of further declines, negotiating for rigid-demand purchases and only buying the dip. As of Thursday, tradable quotes for Shanghai market standard silver ingots against TD premiums had been cut to below 100 yuan/kg. In Shenzhen, non-registered-brand silver ingots were occasionally quoted at parity or even at slight discounts for sale, but suppliers of standard silver ingots still mostly held prices firm and were reluctant to sell. After spot trading turned sluggish, the spot silver ingot market may see suppliers shift inventory and ship to delivery warehouses, and SGE or SHFE inventory is expected to post a slight buildup going forward. Inventory side, silver ingot inventory in Shenzhen posted a slight buildup this week, while inventories in some Shanghai warehouses did not increase significantly. Import profits for silver ingots narrowed sharply this week, and some smelters gradually began to fulfill export permits in late March, reducing domestic supply. Despite softer downstream consumption, silver ingot social inventory did not show a continued buildup trend this week.

Silver prices held up well today, with the backwardation structure of the SHFE silver 2602-2604 contracts continuing to widen. Spot market supply remained tight domestically, and some traders mentioned difficulties in picking up goods from TD long position deliveries at the Gold Exchange. After state-owned smelters completed month-end inventory clearance, quoted spot supplies in the market decreased. Following rapid trades in the morning session where Shanghai silver ingot suppliers raised their premiums against TD to 800-1,000 yuan/kg, spot market premiums against TD generally rose above 1,000 yuan/kg. Some suppliers quoted premiums of 1,000 yuan/kg against the SHFE silver 2604 contract. In the Shenzhen market, purchase quotes for silver materials through jewelry channels with small transaction volumes increased to 1,500-1,800 yuan/kg, showing significant disparities in spot market quotes. Sellers in the silver spot market were reluctant to sell, with only small purchases from rigid industrial demand. Some silver powder and silver nitrate enterprises suspended order-taking and adopted a cautious wait-and-see approach due to the sharp rise in premiums. The tight spot supply and unusual price spread between futures contracts still pose a squeeze risk in the SHFE silver front-month futures contract. Downstream buyers were cautious about high prices, leading to thinner market transactions. Silver Prices Hold Up Well, Price Spread Between Futures Contracts Widens; Spot Market Supply Tight, Premiums Surge

On June 10, 2025, information from the China National Intellectual Property Administration revealed that Hubei Yinke New Materials Co., Ltd. had applied for a patent titled "Preparation Method and Application Method of Silver Powder," with the publication number CN120115709A and an application date of March 2025. The patent abstract indicates that this application discloses a preparation method and application method for silver powder. The silver powder is obtained through the reaction of components with the following weight parts: 29-36 parts of silver nitrate, 8-12 parts of dispersant, 16-22.5 parts of reducing agent, 0.4-1 part of auxiliary agent one, and 1-2.5 parts of auxiliary agent two. The silver nitrate, dispersant, and reducing agent are added in a mass ratio of 1:(0.1-1.2):(0.3-1).