China Gold Exports via Hong Kong Outstripped Imports

SEATTLE (Scrap Monster): The Chinese gold exports via Hong Kong outpaced imports during the month of May this year. This is the second straight month that the imports remained lower in comparison with exports. However, the imports rose significantly by 85% when matched with the previous month. The reduced imports were mainly due to abundant domestic supply and projected subdued demand outlook.

In accordance with the data published by the Hong Kong Census and Statistics Department, net gold imports via Hong Kong stood at minus 1.5 tonnes, as compared with minus 10.3 tonnes in gold. The total gold imports via Hong Kong dropped from 4.2 tonnes to 2.3 tonnes over the previous month. The imports had fallen short of exports for the first time since 2011 during April this year.

The local gold prices in China traded at a discount to the global benchmark. The discounts ranged between $10 and $20 per ounce during this week, as compared with $10-$15 last week. The discounts had averaged at $36.25 per ounce and $29 per ounce in April and May respectively. In Hong Kong, physical gold was sold at a discount of $0.50 an ounce to a premium of $0.50 an ounce.

Off late, China has been increasingly turning to direct imports of gold via Shanghai and Beijing.

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