China’s gold output fell 12.3% year-on-year to 89.2 tonnes in Q1 2026, while retail demand for bars and coins jumped 45% to 127.6 tonnes. Imports rose 33.6% to 186.5 tonnes, with 72.4% routed through Hong Kong. Transit times from Zurich to Shanghai lengthened to 9.4 days, and bank distribution lead times stretched to 11.3 business days. ICBC sold 34.2 tonnes of gold products — up 41.2% — and China’s PBOC added just 15.2 tonnes to reserves, its smallest quarterly purchase since late 2024.
According to www.bloomberg.com, China’s gold production declined by 12.3% year-on-year in the first quarter of 2026, while investor demand for physical gold bars and coins surged by 45% over the same period.
Production Decline and Refining Constraints
China produced 89.2 tonnes of gold in Q1 2026, down from 101.7 tonnes in Q1 2025 — a drop of 12.3%. The decline reflects tightening environmental regulations on small-scale mining operations and stricter oversight of cyanide use in extraction, particularly in provinces including Shandong and Henan. According to the report, national gold output has now fallen for three consecutive quarters, with Q4 2025 showing a 7.1% contraction versus Q4 2024. Domestic refining capacity also faces pressure: Shanghai Gold Exchange (SGE) certified refiners processed 214.3 tonnes of gold in Q1 2026, yet 38% of imported doré bars required re-refining due to non-compliance with SGE’s purity standard of 99.99%.
Surge in Retail Investment Demand
Investor purchases of gold bars and coins through banks and licensed dealers rose to 127.6 tonnes in Q1 2026 — up from 87.9 tonnes in Q1 2025. This 45% increase marks the strongest quarterly growth since Q2 2020. The People’s Bank of China (PBOC) reported that individual holdings of physical gold via bank channels grew by 22.4% in volume and 31.7% in value compared to Q1 2025. Major contributors included the Industrial and Commercial Bank of China (ICBC), which sold 34.2 tonnes of retail gold products in Q1 2026 — a 41.2% rise year-on-year — and China Construction Bank, reporting 28.7 tonnes sold, up 49.3%.
Supply Chain Implications for Precious Metals Logistics
The divergence between falling domestic output and surging retail demand is reshaping logistics flows. Import volumes of refined gold into China rose to 186.5 tonnes in Q1 2026, up 33.6% from 139.6 tonnes in Q1 2025. Most imports arrived via Hong Kong — accounting for 72.4% of total inbound shipments — followed by Switzerland (14.1%) and the UK (6.8%). Customs data shows average transit time for gold shipments from Zurich to Shanghai increased to 9.4 days in Q1 2026, up from 7.1 days in Q1 2025, due to enhanced customs inspections at Shanghai Pudong International Airport and stricter documentation requirements for AEO-certified consignments. Supply chain professionals must now manage tighter inventory buffers: average lead time for bank-distributed gold bars lengthened to 11.3 business days, versus 6.7 days in Q1 2025, according to the China Gold Association’s quarterly logistics survey.
Industry Context and Comparative Trends
This dynamic mirrors broader regional shifts. India’s gold imports rose 28% year-on-year in Q1 2026 to 243.1 tonnes, driven by festival-season demand and rupee depreciation. Meanwhile, U.S. Mint bullion coin sales totaled 542,000 ounces in March 2026 — the highest monthly figure since August 2022. Globally, World Gold Council data shows central bank net purchases reached 290.3 tonnes in Q1 2026, with China’s PBOC adding 15.2 tonnes — its smallest quarterly addition since Q3 2024. In contrast, Turkey’s central bank purchased 72.8 tonnes in the same period. These movements underscore intensifying competition for refined supply across key markets, pressuring global vaulting and bonded logistics infrastructure — especially in Singapore, where licensed custodians reported 17.3% higher storage utilization in Q1 2026 versus Q1 2025.
Source: Bloomberg
Compiled from international media by the SCI.AI editorial team.
