Chinese Gold Demand 559 MT YTD, Up 22 %

In week 13 (24-03-2014/28-03-2014) 36 metric tonnes of gold were withdrawn from the vaults of the Shanghai Gold Exchange. This is the fourth week in a row withdrawals are below the weekly average year to date, which is currently is 43 metric tonnes. Chinese physical demand is dropping from extremely high at the beginning of this year to high in recent weeks. The weekly average of the last four weeks was 35 metric tonnes.


An “at the back of an envelope” calculation: weekly domestic mining is 8.3 tonnes, scrap can’t be more than 5 tonnes (a high estimate), which leaves 21.7 tonnes to be imported per week at recent demand (35 – 8.3 – 5 = 22.7). The year to date weekly average, 43 tonnes, would require to import 29.7 tonnes per week.


That’s it for now, I’m writing a bigger piece on the Chinese gold market in respons to recently published analyzes by Alasdair Macleod, Zero Hedge and Monetary Metals. Stay tuned.






Overview Shanghai Gold Exchange data 2014 week 13



- 36 metric tonnes withdrawn in week 13 (24-03-2014/28-03-2014)

- w/w + 0.66 %

- 559 metric tonnes withdrawn year to date


My research indicates that SGE withdrawals equal Chinese wholesale gold demand. For more information read this



SGE withdrawals 2014 week 13



This is a screen shot from the weekly Chinese SGE trade report; the second number from the left (blue – 本周交割量) is weekly gold withdrawn from the vaults in Kg, the second number from the right (green – 累计交割量) is the total YTD.



SGE withdrawals week 13 2014



This chart shows SGE gold premiums based on data from the SGE weekly reports (it’s the difference between the SGE gold price in yuan and the international gold price in yuan). It seems as if the change of the premiums on the SGE are the inverse of the direction of the price of gold.



SGE premiums



Below is a screen shot of the premium section of the SGE weekly report; the first column is the date, the third is the international gold price in yuan, the fourth is the SGE price in yuan, and the last is the difference.



SGE premiums



In Gold We trust


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