Business news, Non-Ferrous metals recycling.
Asian consumers selling jewellery is boosting gold recycling performance. The global gold recycling sector experienced a notable surge in the first quarter of 2024. Volumes rose by 12%, according to recent data from the World Gold Council. A substantial portion of the 350.8 tonnes recycled during this period came from China, driven by consumers selling jewellery in response to the economic challenges of 2023.
Strong market dynamics. The World Gold Council’s market experts forecast a ‘robust’ increase in scrap gold sales and, consequently, recycling activities following a price rally at the beginning of the year.
Recycling trends varied across regions. In Asia, China led the way although other countries including India saw slower growth in volumes. In contrast, consumers in Europe and the US were motivated to sell gold jewellery by significant price hikes.
Meanwhile, Thailand’s recycling supply remained relatively muted despite the price rally. This is attributed to substantial gold liquidation during the Covid financial distress, which depleted regional supplies.
The Middle East showed a marginal increase in recycling volumes but recorded a year-on-year decline. It was the only region to do so.
Mining and production.
Gold recovered from end-of-life electronics is becoming increasingly significant. Despite a 4% increase in mine production compared to the same period last year, a record high of 893 tonnes was achieved in the first three months of 2024.
The World Gold Council says mining in 2023 produced 3 644.4 tonnes, second only to the record year of 2018.
Overall, total gold production increased by 3% this year, with two-thirds of this growth attributed to recycling, underscoring the critical role of recycled gold in the market.
Central Bank Survey insights. A recent World Gold Council survey revealed that 81% of central bank reserve managers plan to increase their gold holdings in the next 12 months, the highest figure recorded since the survey began in 2019.
Reserve managers are turning to gold to mitigate risks and prepare for ongoing political and economic uncertainties.
The future of gold recycling appears promising, buoyed by strong market dynamics, regional variations, and significant contributions from recycled gold and mining efforts.
As economic factors continue to drive consumer behaviour and market trends, the gold recycling sector is said to be poised for continued growth.