Silver vs Shanghai Futures Exchange (SHFE)

This chart compares Western silver pricing with Shanghai Futures Exchange (SHFE) silver, normalized into the same units (USD per troy ounce) so both markets can be viewed directly together.

SHFE silver is quoted in CNY per kilogram and is heavily influenced by regional factors such as Chinese industrial demand, local liquidity, inventory availability, and currency movements. By converting SHFE pricing into USD/oz and comparing it alongside COMEX silver, the chart highlights periods when Eastern pricing diverges from Western paper markets.

The lower histogram shows the SHFE–COMEX premium or discount in USD/oz. Sustained positive readings indicate SHFE trading above COMEX, often associated with stronger physical demand or tighter local supply, while sustained discounts can reflect currency effects or softer regional demand rather than changes in global silver fundamentals.

This view is useful for identifying inter-market divergence, longer-term demand regimes, and moments when price discovery appears to be driven more by physical conditions than by leveraged futures positioning.