Gold imports by the world's largest physical gold market reached 173 metric tons in June, marking the highest monthly total since March 2024 and the third consecutive month of growth, as a significant pullback in international prices attracted bargain hunters.
Favorable pricing conditions and a stronger local currency encouraged retail investors to increase their holdings, while commercial banks actively used their import quotas to replenish inventories. This dual driver supported demand for gold accumulation plans and retail bullion bars. The first five months of the year saw a sharp year-on-year increase in imports, sustained by a persistent premium of domestic gold prices over international benchmarks. Looking ahead, inventory restocking by the jewelry sector is expected to underpin physical demand, demonstrating the enduring resilience of the country's gold buying appetite.
June import data highlights multiple factors boosting procurement
Customs data shows that China's gold imports in June were approximately 173 tons, up from 163 tons in May, marking the third consecutive month of growth and reaching a two-year monthly high.
From a market perspective, the decline in international gold prices, coupled with the appreciation of the local currency, lowered the cost of buying gold domestically. This prompted a large number of investors to enter the market at lower prices. Domestic commercial banks also seized the opportunity to actively utilize their gold import quotas to build up physical gold reserves.
The implementation of a new gold import permit mechanism on June 1 further encouraged banks to accelerate the use of their existing quota holdings, pushing the total import volume for the month even higher.
Retail buying and bank stockpiling drive a two-pronged boost
Analyst Wu Zijie from Jinqi Futures pointed out that bargain-hunting by investors has been a key driver of the demand recovery. Commercial banks are continuously expanding their inventories, partly to support the sale of retail gold bars and gold accumulation business at their branches, and partly to build safety stock in case of a sudden surge in demand.
Gold accumulation plans, which allow individuals to buy gold in small, regular amounts, are a mainstream way for retail investors in the country to allocate physical gold, consistently generating steady incremental demand.
The country operates a quota management system for gold imports. Banks must hold import permits issued by the central bank, and the strict control of these quotas means their utilization rate directly affects the monthly import volume.
Imports climbed steadily in April and May
The current round of import recovery began in April and has steadily increased.
In April, net gold imports were 157 tons, a month-on-month increase of 10% and a year-on-year increase of 40%. This was driven by a premium of domestic gold prices over international prices, which simultaneously stimulated arbitrage and physical procurement demand.
In May, import volumes further increased to 163 tons, setting a new two-year high.
By the end of May, cumulative gold imports for the year reached 692 tons, a significant 76% increase compared to the same period last year. Analysis from the Guangzhou Southern Gold Market Research Institute indicates that demand for physical bullion bars and retail gold accumulation plans are the core forces driving the surge in imports.
Jewelry sector enters restocking cycle
Jia Rui, Head of Research for China at the World Gold Council, noted that the logic of the domestic-international gold price spread, which supported earlier import growth, remains worth observing. From a seasonal perspective, after a period of relatively weak gold jewelry consumption, the industry is gradually beginning a restocking cycle, which should help keep physical jewelry demand stable in the coming months.
In the short term, fluctuations in international gold prices will continue to influence retail buying sentiment. However, the resilience of physical gold demand in the country will continue to provide a significant underlying support for gold prices.
Summary
The pullback in international gold prices has opened a window for bargain buying, driving China's gold imports higher for three consecutive months and pushing June's import volume to a two-year high. This round of import growth has been jointly driven by retail bargain-hunting and commercial bank stockpiling. Demand for gold accumulation plans and physical bullion bars remains strong, and the positive price spread between domestic and international gold prices continues to stimulate imports. The significant year-on-year increase in import volumes during the first five months underscores the strong demand for physical gold in the country.
Looking ahead, the restocking cycle in the jewelry industry is expected to stabilize physical consumption. The country's persistently robust physical buying appetite will continue to provide crucial support for international gold prices.
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