CHINA September 09 2013 7:35 PM
BEIJING (Scrap Register): China’s gold imports from Hong Kong rose to 129 metric tons in July from 112 tons in June, according to the Hong Kong Census and Statistics Department.
According to HSBC, this was the second highest month on record and an increase year-over-year from 76 tons in July 2012.
China’s gold exports to Hong Kong increased slightly, to 16 tons in July, from 12 tons in June this year but fell from 30 tons in July 2012, respectively, according to the trade data.
On a net basis, China’s gold imports from Hong Kong totaled 113 tons in July this year, more than double net imports of 46 tons in July last year.
“Physical gold demand in China has clearly picked-up in July after gold prices hit the year-to-date low of $1,181/oz on June 28. This increase in demand helped contributed to bullion’s price recovery to over $1,300/oz at the end of July,” the bank added.
“More recently, bullion’s premium on the Shanghai Gold Exchange, an indicator of demand, has softened to low double digits from the $20-30/oz range seen in July and August, they continued.
“However, the recent pull-back in gold prices sub $1,400/oz level may be an encouraging sign for price sensitive physical buyers to step back into the market. That said, China’s gold imports may remain at elevated levels for the medium term, in our view,” the firm concluded.