by Koos Jansen, In Gold We Trust:
Total Chinese wholesale gold demand year to date reached 694 metric tonnes in week 18 (28-4-2014/30-4-2014), annualized 2004 tonnes. During that week 23 metric tonnes of gold were withdrawn from the vaults of the Shanghai Gold Exchange (SGE) in only three days! The SGE was closed on May 1 and 2. If the SGE would have been open for trading five days in week 18 withdrawals could have reached 39.16 tonnes, which is slightly higher than the yearly average of 38.5 tonnes. Chinese gold demand remains robust.
If at the end of December withdrawals have reached 2004 tonnes, the bulk of this had to be imported. Withdrawals can only be supplied by domestic mine output, import and scrap supply. Mine output will approximately be 430 tonnes in 2014. For scrap it’s hard to say how much is being supplied to the SGE, my conservative estimate is in between 200 and 300 tonnes this year. A quick calculation tells us how much China would need to import to fulfill the needs for non-government demand in 2014.
Please follow SGT Report on Twitter & help share the message.