China: Gold Market 2024

Gold Market Size in China

In 2021, the Chinese gold market was finally on the rise to reach $X for the first time since 2018, thus ending a two-year declining trend. In general, consumption, however, recorded a abrupt descent. Over the period under review, the market hit record highs at $X in 2015; however, from 2016 to 2021, consumption failed to regain momentum.

Gold Production in China

In value terms, gold production dropped to $X in 2021 estimated in export price. Over the period under review, the total production indicated a strong expansion from 2012 to 2021: its value increased at an average annual rate of +5.9% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production increased by +12.1% against 2018 indices. The pace of growth was the most pronounced in 2015 when the production volume increased by 45%. Over the period under review, production hit record highs at $X in 2020, and then dropped in the following year.

Gold Exports

Exports from China

In 2021, after three years of growth, there was significant decline in shipments abroad of gold, when their volume decreased by -15.4% to X tons. In general, exports, however, posted slight growth. The most prominent rate of growth was recorded in 2020 when exports increased by 191%. As a result, the exports reached the peak of X tons, and then fell markedly in the following year.

In value terms, gold exports fell to $X in 2021. Over the period under review, exports, however, posted a prominent increase. The pace of growth appeared the most rapid in 2020 when exports increased by 261%. As a result, the exports reached the peak of $X, and then declined in the following year.

Exports by Country

Hong Kong SAR (X tons) was the main destination for gold exports from China, with a 94% share of total exports. It was followed by South Korea (X tons), with a 2.7% share of total exports.

From 2015 to 2021, the average annual growth rate of volume to Hong Kong SAR stood at +1.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Korea (+4.6% per year) and Singapore (-14.3% per year).

In value terms, Hong Kong SAR ($X) remains the key foreign market for gold exports from China, comprising 94% of total exports. The second position in the ranking was held by South Korea ($X), with a 2.7% share of total exports.

From 2015 to 2021, the average annual rate of growth in terms of value to Hong Kong SAR amounted to +9.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Korea (+10.6% per year) and Singapore (-8.8% per year).

Export Prices by Country

The average gold export price stood at $X per kg in 2021, picking up by 4.9% against the previous year. Over the period under review, export price indicated buoyant growth from 2015 to 2021: its price increased at an average annual rate of +7.6% over the last six-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, gold export price increased by +57.3% against 2016 indices. The most prominent rate of growth was recorded in 2020 an increase of 24%. The export price peaked in 2021 and is expected to retain growth in the immediate term.

Average prices varied noticeably for the major overseas markets. In 2021, amid the top suppliers, the country with the highest price was South Korea ($X per kg), while the average price for exports to Hong Kong SAR ($X per kg) was amongst the lowest.

From 2015 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the United Arab Emirates (+15.1%), while the prices for the other major destinations experienced more modest paces of growth.

Gold Imports

Imports into China

In 2021, overseas purchases of gold were finally on the rise to reach X tons after two years of decline. In general, imports, however, faced a deep slump. Over the period under review, imports hit record highs at X tons in 2015; however, from 2016 to 2021, imports failed to regain momentum.

In value terms, gold imports surged to $X in 2021. Overall, imports, however, continue to indicate a drastic downturn. Imports peaked at $X in 2015; however, from 2016 to 2021, imports failed to regain momentum.

Imports by Country

In 2021, Switzerland (X tons) constituted the largest supplier of gold to China, accounting for a 47% share of total imports. Moreover, gold imports from Switzerland exceeded the figures recorded by the second-largest supplier, Australia (X tons), twofold. The third position in this ranking was held by South Africa (X tons), with an 11% share.

From 2015 to 2021, the average annual growth rate of volume from Switzerland totaled -13.2%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (-7.4% per year) and South Africa (-21.6% per year).

In value terms, Switzerland ($X) constituted the largest supplier of gold to China, comprising 47% of total imports. The second position in the ranking was taken by Australia ($X), with a 19% share of total imports. It was followed by South Africa, with an 11% share.

From 2015 to 2021, the average annual rate of growth in terms of value from Switzerland amounted to -6.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (-0.2% per year) and South Africa (-16.9% per year).

Import Prices by Country

The average gold import price stood at $X per kg in 2021, with an increase of 7.3% against the previous year. Overall, import price indicated a buoyant expansion from 2015 to 2021: its price increased at an average annual rate of +7.2% over the last six years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, gold import price increased by +51.8% against 2015 indices. The growth pace was the most rapid in 2020 when the average import price increased by 21% against the previous year. The import price peaked in 2021 and is likely to see gradual growth in years to come.

Average prices varied noticeably amongst the major supplying countries. In 2021, amid the top importers, the countries with the highest prices were Australia ($X per kg) and Japan ($X per kg), while the price for South Africa ($X per kg) and the United States ($X per kg) were amongst the lowest.

From 2015 to 2021, the most notable rate of growth in terms of prices was attained by Japan (+8.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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