Silver Breaks Out Amid China Sulphuric Acid Export Ban Supply Shock

Silver has staged a breakout to two-month highs, driven partly by structural supply-chain concerns emanating from China. Reports indicate that China has banned exports of sulphuric acid, a critical input for copper and precious metals refining. This supply-chain disruption is raising questions about global capacity to process raw copper and silver concentrates, potentially reducing availability of refined metals in Western markets. Ole Hansen, a commodity strategist, is flagging $91.50 as a key level to watch for continued upside. Silver miners including Hecla, Pan American Silver, and Coeur d'Alene are trading with accelerated momentumThe empirical fact that winners keep winning over the medium term..

The narrative is that China's export restrictions on sulphuric acid could force a repricing of silver and copper spot premiums higher, benefiting miners more than refiners or industrial consumers. Physical silver is already trading 26% above spot in some markets, reflecting supply tightness. Copper itself hit an all-time high earlier this week, driven by AI data center infrastructure demand for cabling, transformers, and grid expansion. The confluence of AI-driven industrial demand and China export controls is creating a squeeze in the refined metals complex.

However, the timing of this narrative coincides with broader risk-off sentiment around oil and geopolitical uncertainty. If the Hormuz crisis deepens and global growth falters, industrial metals demand could soften, pressuring both copper and silver despite the supply-chain disruption. The near-term upside in miners and physical silver is credible, but sustainability depends on maintaining AI capex momentumThe empirical fact that winners keep winning over the medium term. and avoiding a sharp slowdown in manufacturing.