China Gold: Consumption to Hit Above 1,000 Tonnes in 2013, Output to Reach 430 Tonnes
Consumption of the precious safe haven yellow metal gold in the world's second-largest economy has been forecast to hit above 1,000 tonnes in 2013. However, the same could not be said for the year 2014.
Du Haiqing, vice general manager at China Gold Group, the country's biggest gold producer, explained at an industry conference held in the northern city of Tianjin that the country's gold demand surge in the first six months of the year was actually unusual because it was just triggered by falling global prices.
"Consumption will gradually cool down. The current consumption level of over 1,000 tonnes will not be sustained and will fall to normal levels as consumers become more rational," Mr Du said.
China's gold demand from January to June in 2013 jumped more than 50 per cent, lured by falling market prices.
China's demand for the precious safe haven yellow metal gold was so great that it was forced to import the commodity from Hong Kong. Gold imports from January to September in 2013 reached 855 tonnes.
Analysts believed the surge was triggered by central bank purchases.
The buying spree, consequently, will make China the world's No.1 gold consumer in 2013, overtaking India. China bought 832 tonnes of gold in 2012, according to data from the China Gold Association.
Meanwhile, China's production of the yellow metal has been forecast to grow 7 per cent to reach a total of 430 tonnes, from 403 tonnes in 2012, according to Mr Du.