China’s dominance in the global platinum market was on full display during this year’s Shanghai Platinum Week, which saw a record number of attendees amid rising prices and a supply deficit. The event highlighted China’s growing influence as a major player in the platinum market, with over 590 delegates from 30 countries participating.
The World Platinum Investment Council (WPIC) reported that China now accounts for a significant portion of global demand for platinum bars and coins, a sharp increase from just a few years ago. This surge in demand is attributed to Chinese investors turning to platinum as an alternative to gold, driving the country’s growing interest in physical platinum investments.
Valterra Platinum’s CEO, Craig Miller, made a notable appearance at the event, marking the company’s strategic move to establish a marketing hub in Shanghai. This decision aligns with Valterra’s goal of shaping demand within China’s expanding platinum-group metals (PGMs) ecosystem, emphasizing the importance of market development in their overall strategy.
Despite anticipated declines in platinum demand due to new tariffs, the market is witnessing a surge in investment and jewelry consumption, particularly in China. The local jewelry sector is evolving, with wholesalers introducing platinum designs that mimic popular gold styles, making platinum jewelry more appealing to retailers and consumers.
Looking ahead, market fundamentals suggest that the supply of platinum will struggle to keep up with growing demand through 2029. Chinese refiners securing accreditation from the London Platinum and Palladium Market are enhancing investor confidence and bolstering the local trading ecosystem.
Regulatory and industrial shifts in China are shaping long-term demand for platinum. With the introduction of stricter vehicle emissions standards and a global phaseout of mercury-based catalysts, the adoption of platinum-based alternatives is expected to increase significantly in the coming years.
The hydrogen economy presents a promising frontier for platinum, with projections indicating a substantial increase in global electrolysis capacity by 2030. This growth, particularly in proton exchange membrane (PEM) technology, is set to dominate a significant portion of the market.
Shanghai Platinum Week’s fifth anniversary was commemorated with the unveiling of a limited-edition platinum medal, underscoring the event’s significance in the global platinum market. The week served as a platform for international engagement and highlighted the pivotal role of platinum investment in meeting future demand.
As the platinum market continues to evolve, China’s influence and demand for the metal are poised to shape its trajectory in the years to come. The developments at Shanghai Platinum Week underscore the country’s pivotal role in driving growth and innovation within the global platinum industry.
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