BEIJING: China’s gold consumption fell for the primary time in three years in 2019, figures launched by the nation’s gold affiliation confirmed yesterday, as excessive costs and an financial slowdown hit shopping for on the planet’s largest gold market.
China consumed a complete of 1,002.78 tonnes of gold in 2019, down 12.91% year-on-year, the China Gold Affiliation mentioned in an announcement on its web site.
The drop was resulting from downward stress on the Chinese language financial system in addition to rising costs for the dear steel within the second half of final yr, the affiliation mentioned.
Spot gold costs climbed by 18.3% over 2019, primarily pushed by coverage easing by main central banks amid the Sino-US commerce battle, lowering the price of holding bullion.
“The excessive worth … has led buyers in stable gold to undertake a ‘wait and see’ stance and gross sales of gold bars by key enterprises and business banks have additionally fallen sharply,” the affiliation mentioned.
Consumption of gold jewelry in China was down 8.16% to 676.23 tonnes in 2019, whereas that of gold bars and cash tumbled by 26.97% to 225.Eight tonnes.
China’s personal gold manufacturing final yr was down 5.21% at 380.23 tonnes, sliding for a 3rd straight yr as assets depleted, though the affiliation famous this was partly offset by a 6.57% rise in uncooked materials imports.
“The sharp discount in manufacturing of home gold mines has resulted in tighter provide … and a rise in imported gold smelting uncooked supplies, which have change into an necessary complement to China’s manufacturing,” it mentioned.