China’s Big Silver Squeeze Persists Even as Prices Steady

International silver prices have steadied after an epic bout of turbulence, but supplies in China are still being pinched as investment and industrial demand drain stockpiles.

Domestic producers and traders are struggling to fill a backlog of orders, pushing up near-term prices and leaving the market heavily backwardated. The front-month contract on the Shanghai Futures Exchange has surged to a record premium, indicating the market’s overwhelming preference for prompt deliveries of the metal.