Latest data shows China meeting Gold demand with own production
SHANGHAI (Scrap Register): Data from the China Gold Association suggest the country is meeting its increased demand with its own production, at least as long as the People’s Bank of China stops adding to its gold reserves.
Commerzbank cites a CGA report showing that gold demand in China surged by 15.5% year-on-year to 816 tonnes in the first nine months of the year. Domestic gold production fell by 3.8% to 375 tonnes.
Despite higher demand and lower production, China’s net gold imports from Hong Kong decreased by 15% year-on-year between January and September, Commerzbank pointed out.
Nonetheless, the imported quantity largely corresponds to the gap between demand and production.
Because the central bank has not bought any gold as yet this year, import demand is falling because domestic gold production can be used entirely to satisfy private demand.
The CGA’s data show that gold demand in China is more robust than the declining import figures would suggest.