Silver Prices Surge in Shanghai Amid Backwardation, Signaling Tight Supply in China [US$77-78/oz]

Dec. 25, 2025, the market data on PM markets. pic.twitter.com/y4Xh1vteUc

— Bai, Xiaojun (@oriental_ghost) December 25, 2025

• Silver Prices Surge in Shanghai Amid Backwardation, Signaling Tight Supply in China
  by https://news.bitcoin.com/
  This week has been an absolute roller coaster in the precious metals space, with price action doing cartwheels and headlines barely keeping up. Spot silver on the Shanghai Gold Exchange finished Dec. 24, 2025, at a premium to futures contracts, a classic case of backwardation that hints at a snug physical market in China.
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  China’s Silver Market Enters Deep Backwardation as Demand Outpaces Supply in Shanghai
  Silver prices on the Shanghai Gold Exchange climbed to lofty territory on Dec. 24, 2025, with the Ag(T+D) spot contract settling near 19,400 Chinese yuan per kilogram, or roughly $78.55 per ounce using the day’s USD/CNY rate of about 7.015.
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  That price tag placed Shanghai silver comfortably above the global yardstick on Comex, where futures wrapped up at $72.36 per troy ounce. The gap pointed to local strains in China’s market, where near-term physical demand looked heavier than available supply.
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  Silver backwardation—when spot prices top futures—made itself known in China’s silver contracts toward the end of 2025. On the Shanghai Futures Exchange, near-dated silver futures sat below the spot equivalent, with the main contract around 17,609 yuan per kilogram, or about $78.02 per ounce, confirming the inverted curve. Such a setup, far from business as usual, suggested traders preferred metal in hand now rather than promises later, often an early warning of supply stress.
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