Metals Report: China's Gold Consumption Rises, Global Steel Production Remains Steady

Metals – China's gold consumption rises

The latest data from China’s Gold Association shows that gold consumption rose 16.4% year-on-year to 555t in the first half of the year. Jewellery consumption rose 14.8% YoY to 368.3t, while demand for bars and coins jumped 30% YoY to 146.3t in the same period. Gold output also increased 2.24% YoY to 178.6t.

The latest data from the World Steel Association (WSA) shows that global steel production remained almost flat year-on-year and stood at 158.8mt in June, as lower output from European countries was offset by higher production from India and Russia. However, cumulative global steel output declined 1.1% YoY to 944mt in the first half of the year. In the EU, monthly crude steel output fell 11.1% YoY to 10.6mt last month. Meanwhile, Chinese steel production reported marginal gains of 0.4% YoY to 91.1mt in June, as domestic mills continue to struggle with weak margins and stringent production curbs from local authorities. In contrast, India’s monthly steel output rose by 13% YoY to 11.2mt last month.

Recent data from China’s Iron and Steel Association (CISA) shows that steel inventories at major Chinese steel mills fell to 15.7mt in mid-July, down 1.5% compared to early July. Crude steel production at major mills fell marginally by 0.3% to 2.25mt/d in mid-July.