Overall gold consumption rises in China
(Kitco News) - China's gold consumption in the first nine months of 2021 rose amassive 48.4% on the year to 813.59 tonnes, according to the China GoldAssociation. This came as demand recovered from a pandemic-affected2020. The figure implies third-quarter consumption of 266.54 tonnes, up18.5% from a year earlier.
In terms of the supply-demand balance, gold production in theperiod from January to September fell 10% from a year earlier to 236.75 tonnes,the association said in a statement. This was said to be due to intensesafety inspections in Shandong, China's topgold-producing province. Shandong Gold Mining, one of China'sbiggest gold miners, attributed a 1.3 billion yuan ($203 million) net loss forthe first nine months to the sharp reduction in its gold output.
In October, Shandong Gold's production stood down around 10%versus year-ago levels, the company said in a filing, adding it was now aimingfor annual production of 24.5 tonnes, versus 37.8 tonnes in 2020.
Looking at the reasons for the rise, jewellery sales during theQixi Festival, China's equivalent of Valentine's Day, in mid-August, and theMid-Autumn Festival in September.
The association said "Theperformance of ancient gold jewellery is still eye-catching," referring toa boom in demand for Chinese heritage gold items.
China's total gold output for January-September impliesthird-quarter production of 84 tonnes, down 9.5% year-on-year.
Overseas, however, China's gold companies lifted output of minedgold by 30.6% year-on-year in the first nine months to 26.9 tonnes, theassociation said.
By Rajan DhallFor Kitco News
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