China's platinum jewelry sales, the world's biggest, may
increase for the first time in four years, driven by rising incomes
in the world's fastest-growing major economy, according to Johnson
Matthey Plc.
Net consumption of platinum for jewelry will probably increase
2.6 percent to 780,000 ounces, or about 24.2 metric tons, from
2006, market research manager Rainaldo O'Meara said yesterday.
Johnson Matthey is the world's largest distributor of platinum
and related metals.
China's economic growth has averaged 9.6 percent over the past
five years, making luxury items such as jewelry affordable to more
people. The country's demand for platinum jewelry, a status symbol
among the new rich, may support prices, which reached a record
$1,488.50 an ounce on November 7.
Overall "demand this year may show some marginal growth by the
end of this year" after slower growth in the fourth quarter, Philip
Klapwijk, chairman of research firm GFMS Ltd said. "The figures we
put together for the first nine months were up by between five
percent and 10 percent year-on-year."
China's use of platinum jewelry surpassed one million ounces for
the first time in 2000, accounting for almost one fifth of the
world's mine supply that year, according to Johnson Matthey. The
country used 24.5 tons of new platinum in jewelry in 2006, down
eight percent from a year earlier, according to GFMS.
"After several years of falling demand, we expect Chinese
platinum jewelry purchases to rise in 2007," O'Meara said.
"Platinum demand in China is expected to continue growing into
2008, again with key demand from auto and jewelry segments."
Disposable incomes among urban households in China, boosted by a
stock market and property boom, rose 13.2 percent in the first nine
months of this year when adjusted for inflation. Demand for
platinum may also have been helped by a sales campaign launched
this year by producer-funded Platinum Guild International,
featuring Chinese film actress Zhang Ziyi. Zhang is mainly known
for her role in "Crouching Tiger, Hidden Dragon." "In terms of
aspiration, platinum has still got a lot of potential in the
Chinese market," Klapwijk said.
(Shanghai Daily December 7, 2007)
