Gold Demand in Electronics Sector Dipped 7%

SEATTLE (Scrap Monster):  The World Gold Council (WGC) reported 7% decline in gold used in electronics during the initial quarter of 2020.

In accordance with the Q1 Gold Demand Trends Report published by the trade body, the demand for gold by the electronics sector totalled 59t during the quarter. The consumption by other technology applications totalled 11.2t, down by 13% from Q1 2019. The dental demand continued to decline 9% year-on-year to 3.2t. The overall demand was 73.4t in Q1’20, the lowest quarterly demand ever. The demand decline highlights the severe impacts of the ongoing pandemic crisis, WGC noted.

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The reduced demand for consumer electronics and shutdown of production facilities in many major manufacturing hubs impacted sector gold demand.

The closure of factories with effect from February this year led to 30% decline in China’s LED output. The worldwide LED output witnessed 25% dip, fuelled by declines in South Korea and Taiwan. The memory sector recorded stable performance during the quarter. The wireless sector, which was badly impacted by shutdowns in China and elsewhere, is expected to see quick recovery. The PCB sector too suffered losses. Three out of the four key electronics fabrication hubs recorded heavy falls in demand during Q1 2020.