World Silver Association Speaks Out, Silver Prices Surge, Multiple Concept Stocks Receive Increased Funding from Investors

International silver prices rebound, attracting market attention to related concept stocks.

Today (February 11), the cyclical sector led the A-share market, with indices in building materials, chemical fibers, non-ferrous metals, steel, oil, and coal among the top gainers. The building materials sector ranked first, with industry leader China National Building Material Co., Ltd. closing with a limit-up, with 114,300 buy orders at the limit, and the latest stock price hitting a new all-time high, surpassing 100 billion yuan in A-share market capitalization.

Other notable building materials stocks with significant gains include Zai Sheng Technology, Shandong Fiberglass, Jiuding New Materials, China National Materials Technology, Zhenshi Shares, and Zhongqi New Materials.

World Silver Association forecasts continued silver supply shortages through 2026

On February 11, international silver prices rebounded. As of 16:54, the London silver spot price rose to $83.666 per ounce, up 3.61%; COMEX silver prices rose above $83 per ounce, with an increase of over 3.8%.

Daye Futures analysis states that, supported by recent central bank gold purchases and de-dollarization in the medium to long term, the fundamental logic of precious metals bottoming remains unchanged. However, in the short term, geopolitical tensions, Federal Reserve hawkish expectations, and the continuous adjustment of margin requirements and daily price limits by exchanges have significantly increased market volatility.

The World Silver Association released a report on February 10 local time, stating that driven by geopolitical tensions and US policy uncertainties, safe-haven demand remains strong, and global silver investment demand is expected to stay robust through 2026. After silver prices broke the $100 mark for the first time in history in January, prices have already gained 11% this year. Despite high prices likely reducing global jewelry and silverware demand by about 17%, industrial demand remains resilient.

Regarding supply, the World Silver Association forecasts a slight increase in mine production by 1% to 820 million ounces, while the total recovered silver triggered by high prices will surpass 200 million ounces for the first time since 2012. However, due to persistent demand exceeding supply, the global silver market is expected to face a shortfall of approximately 67 million ounces in 2026, marking the sixth consecutive year of shortages. The report predicts that, amid tight physical market supply, silver prices are likely to continue their strong performance into 2026.

Adjustment in silver concept stocks

At the beginning of this year, international silver prices surged sharply, with the London silver spot price reaching a record high of $121.65 per ounce intraday on January 29. In this context, related silver concept stocks in the A-share market have been highly sought after. According to data from Securities Times and Data Treasure, as of the close on February 11, the average increase of silver concept stocks this year was 27.13%, far outperforming the Shanghai Composite Index. Hunan Silver, Silver China, and Shenda Resources all gained over 50%.

Hunan Silver’s cumulative increase reached 105.06%, ranking first. The company expects net profit for 2025 to be between 285 million and 385 million yuan, a year-on-year increase of 67.88% to 126.78%. During the reporting period, the production of main products silver and gold increased significantly, with overall rising market prices for precious metals, and sales prices rising in tandem with the market.

Recently, international silver prices have stabilized, and the trend of silver concept stocks has also adjusted accordingly. Data from Data Treasure shows that, compared to the year’s high, over 80% of the stocks have retreated more than 20%. Silver China, Shenda Resources, Hunan Silver, Industrial Silver Tin, and Yuguang Gold & Lead have all fallen more than 30%.

Silver China experienced the largest decline, with a maximum intraday high in January 29, and a retreat of 35.68%. The company expects a net loss of 450 million to 675 million yuan in 2025, turning from profit to loss year-on-year. During the period, the market prices of non-ferrous metals and precious metals increased year-on-year, with production volumes of main products rising and gross profit margins improving. Due to a dispute over storage contracts involving its subsidiary Shanghai Honglu International Trade Co., Ltd., and South Storage Group Co., Ltd. and its Shanghai branch, an estimated liability of about 314 million yuan was provisioned. Additionally, fluctuations in market prices caused fair value changes of embedded derivatives from price-setting transactions to increase, impacting the company’s performance.

In terms of valuation, as of the close on February 11, 11 silver concept stocks had a trailing P/E ratio below 30, including Fuchun Environmental Protection, Zhuyi Group, Zijin Mining, Yuguang Gold & Lead, and Jiangxi Copper. Fuchun Environmental Protection had the lowest trailing P/E at 20.26.

From a funding perspective, many silver concept stocks received substantial net buying from margin traders. As of the close on February 10, 18 stocks had net margin purchases exceeding 100 million yuan this year. Zijin Mining, Jiangxi Copper, Shenda Resources, CICC Linan, and Western Mining had the highest net margin buy-ins.

Zijin Mining received a net margin purchase of 4.322 billion yuan, ranking first. The company expects net profit for 2025 to be approximately 51 to 52 billion yuan, a year-on-year increase of about 59% to 62%. During the period, sales prices of mineral gold, copper, and silver increased year-on-year, with approximately 437 tons of mineral silver sold. The company’s production plan indicates that mineral silver will reach 520 tons in 2026.

(Source: Data Treasure)