China's Gold Reserves Surge: Insights into Metals Trade Data

Metals: China's gold reserves increase further

China continued to increase its gold reserves for the ninth straight month in July, according to official data. The People’s Bank of China raised its gold reserves by about 23t to a total of 2,137t last month. China added around 188t of gold in its gold-buying spree that started in November. Given the uncertain geopolitical environment, it is likely that central banks will continue to add to their gold holdings in the coming months.

China released its preliminary trade data for metals this morning, which shows total monthly imports for unwrought copper fell 2.7% YoY to 451kt in July, indicating persistent weak demand from the property and construction sector. Cumulatively, unwrought copper imports fell 10.7% YoY to 3mt over the first seven months of the year. In contrast, imports of copper concentrate rose 3.9% YoY to 1.98mt last month, while year-to-date imports rose 7.4% YoY to 15.4mt during Jan 23-Jul 23. In ferrous metals, iron ore monthly imports rose 2.4% YoY to 93.5mt. However, that's down from the 95.5mt (-2% MoM) imported in June. Cumulatively imports gained 6.8% YoY to 670mt over the first seven months of the year.

On the exports side, China’s unwrought aluminium and aluminium products shipments fell 25% YoY to 490kt last month, while Year-to-Date exports declined 20.8% YoY to 3.3mt over the first seven months of the year. Exports of steel products jumped 27.9% YoY to 50.9mt during Jan 23- Jul 23.