Chinese platinum jewelry demand remains muted, says refiner

Fashion Network

03-06-2025

Metals refiner Johnson Matthey Plc sees muted demand for platinum jewelry among Chinese consumers, in spite of a recent surge in imports by manufacturers that's straining global supplies of the metal.
The world's second-biggest refiner of platinum group metals said strong physical demand from China has exacerbated tightness in the market and pushed prices to two-year highs, as the jewelry industry aggressively stockpiles the cheaper alternative to gold.
But Johnson Matthey remains cautious on prospects for end-user demand, which is expected to climb only about 1% this year, according to the company's director of market research.
'Just because retailers and wholesalers are stocking up on platinum doesn't mean consumers are buying in,' said Rupen Raithatha, adding that the company's 2025 demand forecast was a conservative estimate. The resulting excess inventory could discourage future manufacturing, he added.
Citigroup Inc. analysts said last week that Chinese buyers still favor gold over platinum jewelry, noting they would continue to monitor the market for a material shift in consumer behavior.
Tepid consumption of platinum jewelry may offer relief to a market that's been under strain since fears over potential US tariffs saw traders race to deliver metal into New York warehouses to capitalize on extreme price dislocations. More recently, lease rates in London have also surged to near historic highs, underscoring supply tightness as metal flowed to China.
Declining demand from the automotive sector — the metal's largest end-user — will also ensure there's no major structural uptrend in platinum prices in the long-term, according to Marcus Garvey, head of commodity strategy at Macquarie Group Ltd.
Still, prices could remain elevated next year due to expectations of a multi-year supply deficit, he added. 'There is still above ground inventory, but China has effectively taken it out of the Western market.'