Posted on 30 Oct 2024
Domestic production and consumption of gold throughout China both declined on year during January-September, slipping by 1.2% and 11.2% respectively to 268.1 tonnes and 741.7 tonnes, according to a China Gold Association (CGA) release issued on October 28.
Within the total output, gold extracted from domestically-mined minerals and as a by-product of nonferrous smelting reached 209.7 tonnes and 58.4 tonnes respectively, the CGA data showed.
"China's gold mining industry is currently in a transition period between old and new production capacities (so) gold output has not increased as expected," the CGA said.
"Gold resources in older, easily mined deposits are gradually depleting, while new large-scale mines have yet to establish new production capacity. From a long-term development perspective, although gold output has temporarily declined, the outlook remains promising," the association added.
Gold smelted in China from imported minerals rose by 15.5% on year to 111.2 tonnes in the first nine months, according to the association. When this production is included, the country's gold output came in at 379.3 tonnes, higher by 3.2% on year.
Meanwhile, during January-September China's total gold consumption for all uses decreased from the previous year, but demand for high-premium gold jewelry and lower-premium gold bars and coins showed a disparity amid the steady rise gold prices. The GSA statistics showed that consumption of the former fell by 27.5% on year to 400 tonnes, while that of the latter jumped by 27.1% during the same period to 282.7 tonnes.
As of end-September, the price of 99.99% gold on the Shanghai Gold Exchange closed at Yuan 595.25/gram ($83.3/g), climbing by 23.8% from this year's opening price of Yuan 480.8/g, the association noted.
Meanwhile, during January-September gold demand for industrial applications, among others, slipped by 2.8% on year to 59 tonnes, the data showed.
Source:Mysteel Global
