Catenaa, Monday, January 19, 2026- China has imposed strict export controls on silver, limiting shipments to 44 state-approved companies with high production capacity and credit lines. a report by NASDAQ said.
Analysts say the move transforms silver from a commodity into a strategic material, following a pattern previously applied to rare earth metals.
The new policy, effective January 1, restricts hundreds of small and mid-sized exporters, who supply global industrial users and refiners, from exporting.
China dominates the silver market through its refining capacity, controlling 60 to 70 percent of global refined silver output despite ranking second in mining.
The country exported 4,600 tonnes of silver in the first 11 months of 2025 while importing just 220 tonnes.
US authorities already classify silver as a “critical mineral,” and global supply shortages are likely to intensify as demand continues to exceed mine output, which has been flat since 2016.
Analysts highlight that more than half of silver is mined as a byproduct of base metals, making production largely unresponsive to higher silver prices. Structural deficits have persisted for four consecutive years, totaling 678 million ounces.
The controls are expected to impact key sectors, including defense and clean energy, where silver is essential. Conversion to alternatives like copper will take years due to industrial constraints.
Analysts warn that prices may need to reach around $134 an ounce before significant demand reduction occurs.
Experts say China is leveraging silver to secure economic and industrial dominance, signaling to the West that access to critical metals may require negotiation with Beijing.
