Platinum loses its glitter in China

SHANGHAI – Falling platinum demand in China, the world’s biggest consumer of platinum jewellery, will weigh on global prices through the end of the year, industry officials said yesterday.

“I think we are very much approaching the end of the bull market in platinum. The market is coming back into balance this year,” John Reade, an influential metals analyst at UBS, told Reuters on the sidelines of a global precious metals conference.China has seen a decline in platinum consumption because of firm prices and stiff competition from white gold, an alloy of gold and other light-coloured metals such as silver and palladium.The country accounts for around 18 per cent of global platinum demand.Precious metals refiner Johnson Matthey said platinum purchases for making jewellery dropped 19 per cent to 1,2 million ounces in 2003, the first decline since the market started to develop in China in the mid-1990s.Platinum, also used in the production of automobiles, touched a peak of US$942 (N$6,3 billion) an ounce in April on supply concerns.But trading has been volatile.Some dealers said that only prices below US$850 would generate demand either from the jewellery or automobile industries.Spot platinum was trading at US$850/855 an ounce by 0635 GMT, versus US$846/851 an ounce last quoted in London on Monday.-Nampa-ReutersThe market is coming back into balance this year,” John Reade, an influential metals analyst at UBS, told Reuters on the sidelines of a global precious metals conference.China has seen a decline in platinum consumption because of firm prices and stiff competition from white gold, an alloy of gold and other light-coloured metals such as silver and palladium.The country accounts for around 18 per cent of global platinum demand.Precious metals refiner Johnson Matthey said platinum purchases for making jewellery dropped 19 per cent to 1,2 million ounces in 2003, the first decline since the market started to develop in China in the mid-1990s.Platinum, also used in the production of automobiles, touched a peak of US$942 (N$6,3 billion) an ounce in April on supply concerns.But trading has been volatile.Some dealers said that only prices below US$850 would generate demand either from the jewellery or automobile industries.Spot platinum was trading at US$850/855 an ounce by 0635 GMT, versus US$846/851 an ounce last quoted in London on Monday.-Nampa-Reuters