en.Wedoany.com Reported - According to data released by the Shanghai Metals Market (SMM) on July 1, 2026, China's silver ingot production in June 2026 stood at 1,562 tons, down 6.5% month-on-month; cumulative production in the first half of 2026 reached 9,773 tons, up 6.9% year-on-year. The decline was mainly attributed to concentrated maintenance shutdowns at copper smelters and production halts at some facilities.
Silver ingots are one of the primary product forms of silver, widely used in photovoltaic silver paste, electronic components, silver alloy materials, and investment sectors. China is one of the world's largest silver producers, with silver primarily produced as a byproduct of non-ferrous metal smelting such as copper, lead, and zinc. According to data from the China Nonferrous Metals Industry Association, China's silver production in 2025 was approximately 16,000 tons, accounting for about 14% of global output. The month-on-month decline in silver ingot production is closely linked to the seasonal maintenance cycle of the copper smelting industry—domestic copper smelters typically schedule annual equipment maintenance from the end of the second quarter to the beginning of the third quarter, leading to a temporary contraction in byproduct silver production.
In terms of inventory, China's silver ingot producer inventories fell by 17% month-on-month in June 2026, mainly due to the dual impact of reduced supply and an open export window. Driven by price differentials between domestic and international silver prices, some smelters increased export efforts, achieving significant inventory clearance by the end of the month. According to SMM research, as of the end of June, domestic social inventories of silver ingots had fallen to a low level for the same period in recent years.
From the perspective of downstream demand, the photovoltaic industry continues to see rigid growth in demand for silver paste. According to data from the China Photovoltaic Industry Association, China's newly installed photovoltaic capacity grew by approximately 35% year-on-year from January to May 2026, driving a sustained increase in silver usage for front-side silver paste. Additionally, emerging fields such as 5G communications and Vehicle Industry" target="_blank">new energy vehicles are maintaining growth in demand for silver-based contact materials and silver alloy solders.
Looking ahead, as the copper smelter maintenance season ends and some halted facilities resume production, domestic silver ingot production is expected to recover somewhat in July and August. However, given that current smelter inventories have fallen to low levels and the export window remains open, the tight supply situation in the silver ingot market may persist in the short term. An SMM silver analyst stated that the pace of silver ingot production recovery in the third quarter will depend on the resumption progress of copper smelters and the impact of silver price trends on smelters' willingness to sell.
