LONDON (Scrap Register): One of the world’s largest gold-consuming nations is expected to see firm bullion demand this year and the next, according to one regional director of the World Gold Council.
In an interview with Reuters, on the sidelines of the London Bullion Market Association’s annual conference in Singapore, Roland Wang, managing director for China at the WGC, said that the council is expecting total Chinese demand be between 900 and 1000 tonnes for 2016 and 2017.
The WGC’s forecast would also be relatively in line with 2015 as the council noted that total demand last year was 981.50 tonnes.
However, Wang added that Chinese domestic demand will not be without its hurdles, noting in the interview “it may face some challenges especially on the jeweler side and also it depends on the price and China's own economic situation.”
Chinese demand has been front and center in the last few weeks as analysts are expecting consumer interest to pick up as prices have fallen more than 4%, since the start of the month.
Analysts noted that the fourth quarter is traditionally seen as an important month for Asian demand as Indian consumers buy jewelry ahead of Diwali, which will start Oct. 30 and from Chinese consumers ahead of the Lunar New Year early next year.
The WGC has only has demand figures available for the first half of the year. The data show that overall Chinese demand totaled 444 tonnes in the first six months of 2016, down more than 8% compared to 486 tonnes of gold consumed during the same time last year.