International silver prices have staged a rebound, drawing market attention to related concept stocks. On February 11th, cyclical sectors led gains in the A-share market, with indices for building materials, chemical fibers, nonferrous metals, steel, petroleum, and coal ranking among the top performers. The building materials sector led the gains, with industry leader Zijin Mining Group Company Limited closing at its daily limit-up. The buy order volume at the limit-up price reached 114,300 lots, pushing its share price to a new historical high and its A-share market capitalization above the 100 billion yuan threshold.

Other top gainers in the building materials sector included Zaisheng Technology, Shandong Fiberglass, Jiuding New Materials, Zhongcai Technology, Zhenshi Shares, and Zhongqi New Materials. World Silver Council Predicts Continued Silver Supply Shortfall in 2026 On February 11th, international silver prices rebounded. As of 16:54, the spot price of London silver rose to $83.666 per ounce, an increase of 3.61%; the COMEX silver price climbed above $83 per ounce, gaining over 3.8%.

Dayou Futures analysis indicated that, while the long-term support for precious metals from central bank gold purchases and de-dollarization remains intact, short-term factors such as fluctuating geopolitical tensions, hawkish expectations from the Federal Reserve, and successive increases in margin requirements and daily price limits by exchanges have significantly elevated market volatility. The World Silver Council released a report on February 10th local time, stating that global silver investment demand is expected to remain strong in 2026, supported by safe-haven sentiment driven by geopolitical tensions and U.S. policy uncertainty. Following silver's historic breakthrough of the $100 per ounce mark in January, prices have recorded an 11% gain year-to-date. Although high prices are projected to reduce global jewelry and silverware demand by approximately 17%, industrial demand remains resilient. On the supply side, the World Silver Council forecasts a modest 1% increase in mine production to 820 million ounces, while high prices are expected to push the total volume of recycled silver above 200 million ounces for the first time since 2012. However, due to total demand persistently outstripping supply, the global silver market is projected to face a supply deficit of approximately 67 million ounces in 2026, marking the sixth consecutive year of shortage. The report predicts that silver prices are likely to maintain their strength in 2026 against the backdrop of tight physical market supply. Silver Concept Stocks Experience Adjustments Earlier this year, international silver prices surged dramatically, with the spot price of London silver briefly reaching $121.65 per ounce on January 29th, setting a new historical record. Against this backdrop, related A-share silver concept stocks garnered significant market enthusiasm. According to Securities Times·Databao statistics, as of the close on February 11th, silver concept stocks had gained an average of 27.13% year-to-date, significantly outperforming the Shanghai Composite Index over the same period. Hunan Silver Co.,Ltd., Baiyin Nonferrous Group Co.,Ltd., and Shengda Resources all saw cumulative increases exceeding 50%.

Hunan Silver Co.,Ltd. led with a cumulative gain of 105.06%. The company forecasts its 2025 net profit to be between 285 million yuan and 385 million yuan, representing a year-on-year increase of 67.88% to 126.78%. During the reporting period, the company experienced substantial growth in the output of its primary products, silver and gold, alongside an overall upward trend in the market prices of these precious metals, allowing selling prices to rise in tandem with the market. Recently, international silver prices have stabilized, and silver concept stocks have subsequently undergone adjustments. According to Databao statistics, comparing the closing prices on February 11th to their year-to-date highs, over 80% of the concept stocks have experienced pullbacks of more than 20%. Baiyin Nonferrous Group Co.,Ltd., Shengda Resources, Hunan Silver Co.,Ltd., Xingye Silver Tin, and Yuguang Gold Lead have seen retracements exceeding 30%.

Baiyin Nonferrous Group Co.,Ltd. experienced the largest pullback. The stock hit its year-to-date high during intraday trading on January 29th and has since retreated by 35.68%. The company anticipates a net loss of 450 million yuan to 675 million yuan for 2025, shifting from a profit to a loss year-on-year. During the reporting period, market prices for nonferrous and precious metal products increased compared to the previous year, and the company's main product output and gross profit margin also rose year-on-year. However, the company recognized a provision for estimated liabilities of approximately 314 million yuan related to a storage contract dispute involving its subsidiary, Shanghai Honglu International Trade Co., Ltd., with Nancun Warehouse Management Group Co., Ltd. and its Shanghai branch. Additionally, losses from the fair value change of embedded derivative financial instruments formed by priced transactions increased year-on-year due to market price volatility, adversely affecting the company's performance.

Regarding valuation levels, as of the close on February 11th, 11 silver concept stocks had a trailing price-to-earnings ratio below 30 times. These include Fuchun Environmental Protection, Zhuye Group, Zijin Mining Group Company Limited, Yuguang Gold Lead, and Jiangxi Copper. Fuchun Environmental Protection had the lowest trailing P/E ratio at 20.26 times. From a capital flow perspective, several silver concept stocks received significant increases in positions from margin traders. As of the close on February 10th, 18 silver concept stocks had seen net margin buying exceeding 100 million yuan year-to-date. Zijin Mining Group Company Limited, Jiangxi Copper, Shengda Resources, Zhongjin Lingnan, and Western Mining ranked among the top in terms of net margin buying volume.

Zijin Mining Group Company Limited led with net margin buying of 4.322 billion yuan. The company expects its 2025 net profit to be approximately 51 billion yuan to 52 billion yuan, a year-on-year increase of about 59% to 62%. During the reporting period, the selling prices of its mined gold, mined copper, and mined silver increased year-on-year, with mined silver output reaching approximately 437 tonnes. According to the company's production plan, its mined silver output is targeted to reach 520 tonnes in 2026.