(2002 1st quarter) the sale amount of platinum in Chinese market reach 560,000 ounces. the first time to surpass that of Japan, No.1 platinum market of the world.
China Becomes World's Chief Platinum Consumer
china.org.cn
China platinum demand seen soft on sky-high prices
By Lee Chyen Yee and Lewa Pardomuan
SHANGHAI/SINGAPORE, March 4 (Reuters) - Soft demand for platinum is expected this year from China, the world's biggest market for platinum jewellery, as global prices hover near 24-year highs.
Demand from China would likely stay steady or fall 10 percent this year, in the face of competition from cheaper white gold, traders and analysts said.
China buys platinum worth around $1 billion a year, importing all its needs. It used 1.2 million ounces of the white lustrous metal in 2003, around 18 percent of global demand, precious metals refiner Johnson Matthey said.
"China has taken the platinum market by storm since the mid-1990s, but I'm not so optimistic this year," said Liu Shan'en, an analyst at state-backed Beijing Gold Economic Development Research Centre.
"With where prices are headed, demand might stay flat or even fall for various reasons. For one, we're seeing white gold taking away some of platinum's market share," Liu said.
Platinum jewellery makers had spun huge profits as the white metal gained popularity with China's urban elite, but margins have narrowed as prices hit 24-year highs at $903 an ounce on Tuesday -- a jump of around 30 percent from a year earlier.
Some jewellers in China's commercial hub of Shanghai have seen customers switch to white gold -- an alloy of gold and other light-coloured metals such as silver and palladium.
"White gold is selling very well. It looks quite similar to platinum and is much more attractively priced," said Xiao Tai, a saleswoman at major Chinese jewellery store Shanghai Lao Miao Jewelry Co Ltd.
"Platinum is getting so expensive now," said the smiling 32-year-old as she adorned a mannequin with a necklace.
The jump in platinum prices is blamed on Japanese speculation and expected output cuts at top producer Anglo American Platinum .
Since Tuesday's 24-year high, prices have fallen prey to a bout of profit-taking. At 1000 GMT, platinum was trading at $882/887 an ounce compared with $882/886 last quoted in New York on Wednesday.
Some China-related platinum buying was reported this week out of Hong Kong, which raised speculation that China was building up an inventory for the lustrous metal, dealers said.
But since details were sketchy, many dealers were against putting too much hope on China -- even though the country's ferocious appetite was cited as a supporting factor in the platinum market this year.
"We are seeing bits and pieces of buying, which is supposed to be China-related buying. But we don't know what the real amount is," said one dealer at a major trading house in Tokyo.
asia.news.yahoo.com
Platinum Jewelry Demand (in ounces)
China
2000 1,100,000
2001 1,300,000
increase: +18%
diamondregistry.com |
