Marketupdate

Tag: imports

  • China imported 80 tonnes of gold in March

    China imported 80 tonnes of gold in March

    Last month China has imported 80,6 tonnes of gold from Hong Kong, a 27,6% drop compared to the 111,4 tonnes imported in the month of February. Imports dropped as well compared to the same month last year. In March 2013, net imports of gold from Hong Kong were about 130 tonnes. The Hong Kong Census and Statistics Department publishes monthly data on the Chinese gold imports from Hong Kong. The figures about March 2014 also show in increase in gold leaving China. Compared to February, the gold exports back to Hong Kong increased from 15,8 to 23,5 tonnes of gold.

    These numbers suggest a drop in demand for physical gold in China. However, the figure of 80,6 tonnes of gold imported remains substantial. While it may be less than the amount of gold imported in 2013, it is well above the long-term average. Another side note we have to make is that China does not publish data on gold which enters the mainland directly through Shenzhen, Shanghai or Beijing. There are no exact figures on direct gold imports, but the most recent estimate states a volume of more than 190 tonnes during 2013.

    China imports less gold

    Last year we saw an explosive growth in Chinese gold demand, but the last couple of months demand has waned a little. The goldprice didn't drop further from 2013 lows, but it hasn't made a big move to the upside either. The relative price stability allows the Chinese consumer to wait before buying gold. Because of the drop in gold demand, the premium on gold in China has fallen substantially. For the first time since September 2012, the gold at the Shanghai Gold Exchange trades at a small discount to the global spot price of gold. In March, the average discount was $1,02 per troy ounce. The largest jewellery producer in China, Chow Tai Fook Group, saw a small drop in demand as well. In the first quarter of 2014 the demand increased by just 4%, compared to 11% in the last quarter of 2013. According to Liu Xu, analyst of Capital Futures Co in Beijing, the big banks in China reduced their imports because of the fall in gold premium. According to Duan Shihua of Shanghai Leading Investment Management Co, Chinese consumers might be more price-sensitive than expected.

    China imported less gold in March

    China imported less gold in March

  • China imported 76 tonnes of gold in December

    China has increased it’s gold imports in December, according to the latest figures published by the Hong Kong Census and Statistics Department. Gross gold imports through Hong Kong amounted to 126,64 tonnes, an increase of 18% compared to the month of November. Net import – deducting the amount of gold shipped back from China to Hong Kong – increased from 76,39 tonnes in November to 94,54 tonnes in December. This is an increase of more than 23% on a month to month basis.

    The increased imports in December could be explained by an increase in inventory due to the Chinese New Year. On the last day of January, Chinese celebrated the Year of the Horse. Many Chinese regarded this as a good time to buy some gold. Prices were also down in December, adding to the demand.

    Gross gold imports from Hong Kong to China in 2013 and 2012

    Gross gold imports from Hong Kong to China in 2013 and 2012

    Gross versus net gold imports from Hong Kong to China

    Gross versus net gold imports from Hong Kong to China

    China doubles gold imports

    China imported twice as much gold through Hong Kong in 2013 as they did in 2012. Last year, total net import amounted to more than 1.128 tonnes of gold, more than double the 557,7 tonne imported in 2012. Gross imports rose from 834,4 tonnes in 2012 to a record 1.496,82 tonnes in 2013, an increase of almost 80%. While China imports the majority of it's gold through Hong Kong, it is not the only channel. There is also a substantial amount of gold entering China directly through Shanghai. However, the Hong Kong import figures give a good estimate on the development of Chinese gold demand in the last couple of years. According to analyst Victor Thianpriya from the Australia New Zealand Banking Group (ANZ) we can expect even higher gold import figures for January. This is not only because of the Chinese New Year, but also because many Chinese believe the goldprice will not drop much further.

    China overtakes India

    India was the largest importer of gold for years, but the Chinese managed to overtake India last year. India has to deal with a balance of payments deficit, caused by the import of both oil and gold. To stop the rupee from declining further, the Indian government and central bank restricted the import of gold. While the smuggling has increased since, official imports came down significantly. In China on the other hand, the government is promoting the ownership of physical gold among the people. China and India combined account for almost half of the world annual demand for physical gold.

  • China bought 42% less gold in November

    China imported less gold in November compared to the month before, according to the latest data published by the South China Morning Post. Gross imports in November were 107,36 tonnes, compared to a 7-month high of 147,92 tonnes in October. Despite the drop in imports compared to one month ago, imports were still higher compared to the same month of 2012. However, the monthly difference between this year and least year was the smallest in November.

    Net gold imports, which deduct the flow of gold from China back to Hong Kong from the gross import figure, dropped to 76,39 tonnes in November. Compared to the 131,19 tonnes in November it amounts to a 42% decrease in demand. From May till October, the net Chinese gold imports were steady above 100 tonnes.

    A dealer in Hong Kong gave toe following explanation for the decline in gold imports: "It seems that banks have finished using up the quotas, which may be the reason why imports were down. Another reason is that people already have enough gold after recent purchases because prices had been steady in November." Bargain hunters in the Chinese gold market are either waiting for lower prices or have already bought gold in October.

    Chinese gold imports dropped 42% in November

    Chinese gold imports dropped 42% in November

    China largest buyer of gold

    This year China will import more gold than India, the second largest buyer of gold. Indian demand for gold remains strong, but as a result of the import restrictions (tax and quota) the official gold imports declined. The decline was offset by in increase in gold smuggling. According to the World Gold Council (WGC) the amount of gold smuggled into India was about 150 tonnes. The Chinese authorities in the other hand promote the accumulation of gold, by increasing the number of companies allowed to import and export gold through the Shanghai Gold Exchange. The graphs below only represent the gold imports of China through Hong Kong and not the imports through other channels. Earlier this year we found out that China is also importing gold directly through Shanghai. Unfortunately, we don't know how those number relate to the imports through Hong Kong. China remains very secretive regarding the gold market. They don't publish total gold imports on a month to month basis. Also, China is reluctant to share the size of their official gold reserves with the rest of the world.

    Gross versus Net Chinese gold imports

    Gross versus Net Chinese gold imports

  • China imported 116,3 tonnes of gold in September

    China imported 116,3 tonnes of gold in September

    According to the latest data from the Hong Kong Census and Statistics Department, China has imported 116,3 tonnes of gold from Hong Kong during the month of September. Gross imports went down a little compared to the month before, but compared to September last year it was almost 67% higher. Net imports, the figure which is adjusted for the exports of gold from China back to Hong Kong, came in at 109,6 tonnes during September. A small drop compared to the net imports of 110,2 tonnes of gold in August.

    Chinese gold imports in 2013 and 2013

    Chinese gold imports in 2013 and 2013

    China continues buying gold

    The Chinese don’t seem to bother with the decline in gold prices during this year. Quite the opposite is true, because the gross gold imports of China are 1.114,9 tonnes so far this year. Compared to last year, we are talking about an increase of 91,6% in gross gold imports. Earlier this year, the World Gold Council predicted net gold imports in China to surpass the 1.000 tonnes. With total net imports at 826,3 tonnes in the first nine months of this year, this target will probably be reached quite soon.

    During September, the price of gold declined for the first time in three months. Gold premiums during this month went down as well, according to Bloomberg. The average premium on gold was $8,97 per troy ounce in September, compared to $13,57 per troy ounce in August.

    This year gold prices are down almost 20% in dollars and more than 23% in euro’s. However, large gold markets like China, Russia and India keep buying a lot of gold. Especially China, which doubled gold imports compared to last year…