By Paul Ploumis (ScrapMonster Author)
November 27, 2015 04:48:27 AM
Capital Economics say they expect total imports by China and India to pick up in the coming months as low prices prompt additional buyingDespite Lower Import Data, China & India Gold Buying To Rise – Capital Economics
(Kitco News) - Mainland China’s gold imports from Hong Kong fell in October after having increased in the three previous months, according to the latest data released from the Hong Kong Census and Statistics Department Thursday.
Commenting on the data, analysts at Capital Economics say they expect total imports by China and India to pick up in the coming months as low prices prompt additional buying.
“The price of gold strengthened in October and the Chinese price has been relatively high compared to international markets for the past few months,” they say.
“The higher prices were probably a key factor driving October’s lower import numbers as the Chinese market is particularly price-sensitive. However, buying may well recover soon, as prices have fallen sharply so far in November and we expect demand to rise in the run up to Chinese New Year (which is in February 2016).”
The data showed that imports via HK dropped by 26% month over month and by 8% year over year.
Meanwhile, data out of India showed that gold imports fell by 19% month over month and by 59% year over year in October.
“India’s weak buying was particularly surprising given that import demand usually rises ahead of the Diwali festival, which was on 11th November,” they note.
“However, the bigger picture is that India’s imports for January to October are still 138 tonnes higher than the corresponding period last year.”
Overall, the analysts expect Chinese demand to rise by 5% next year and Indian buying to increase by 6%.
Courtesy: Kitco News