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Gold consumption in China drops 48.2% in Q1

By Zheng Xin | chinadaily.com.cn | Updated: 2020-04-28 13:56
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A worker presents the "gold rat" set in a gold store in Suzhou, Jiangsu province on Dec 10, 2019. [Photo/Sipa]

Gold consumption in China dropped 48.2 percent to 148.63 tons during the first quarter this year, with consumption via the jewelry sector decreasing 51.06 percent to reach 92.04 tons, the China Gold Association said on Tuesday.

The outbreak of the novel coronavirus, together with the rise in the price of gold, led to a downward trend in gold consumption, according to the association. Some of the gold jewelry processing enterprises have still not resumed work due to receiving few orders, it said.

Consumption in other forms has also witnessed a sharp drop, with gold bars and gold coins falling 46.97 percent year-on-year to 37.67 tons, and the use of gold for industrial and other purposes down 32.04 percent year-on-year to 18.92 tons.

Increasing sales of gold jewelry and gold coins achieved through online platforms are satisfactory, but not enough to make up for the loss of in-store sales, it said.

According to the association, China's gold output dropped by 10.93 percent year-on-year in the first quarter, reaching 82.63 tons, also due to the outbreak of the novel coronavirus.

Shandong, Yunnan, Henan, Inner Mongolia and Jilin saw the most gold output nationwide, with total production exceeding 22 tons, more than 33 percent of the country's total gold output, it said.

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