A quarter of annual production is nothing compared to total accumulated stocks and private holdings. Were these reversals of previous purchases or new contracts that will require future delivery? If the latter, they could lose a lot in a rebound.
Reminds me of the Pitman Act when about 250 million ounces of silver was sold to India in 1921 (in the form of melted Morgan dollars from U.S. Treasury vaults) to be replaced by new silver dollars in order to subsidize western miners.
But the Morgan dollars were 90% silver, while Indian rupees were then 91.7% silver.