Chinese platinum jewelry demand remains muted, says refiner
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.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
LeMonde
17 hours ago
- LeMonde
In China, coins and banknotes have all but disappeared
You have to get up early if you have any hope of spotting them, and you must stay alert to identify them in the aisles. At the Xinmin fresh produce and vegetable market, located in the heart of Beijing just North of the 2 nd Ring Road, the oldest customers are now the last to keep using coins and banknotes, which are vanishing from the rest of Chinese society. The world's second-largest economy has undergone rapid digitization, and all daily transactions – from supermarkets to cafés, taxis to public transportation – are now made with one of two apps that have become vital to life in China: WeChat or Alipay. Their green and blue logos are displayed at every payment point, and many businesses no longer even keep a traditional cash register, but instead simply scan the QR code presented by the customer. Many taxis refuse cash payments, as do many neighborhood grocery stores, which often do not have the change to give back in any case. Ma Dian, a fruit and vegetable vendor from Hubei who works at this covered market in the capital, observed that the trend surged abruptly over the past decade, becoming what he calls a "radical change." "I still accept cash only to help the very elderly. Below the age of 80, almost everyone has switched; above that, it's much harder to adapt," he said while promoting his Dalian blueberries.
France 24
a day ago
- France 24
Rwanda and DR Congo sign US-brokered peace agreement in Washington, DC
Rwanda and Democratic Republic of Congo signed a US-brokered peace agreement on Friday, raising hopes for an end to fighting that has killed thousands of people and displaced hundreds of thousands more so far this year. The agreement marks a breakthrough in talks held by the administration of US President Donald Trump, which also aim to attract billions of dollars of Western investment to a region rich in tantalum, gold, cobalt, copper, lithium and other minerals. At a ceremony with US Secretary of State Marco Rubio at the Department of State, the two countries' foreign ministers signed the agreement pledging to implement a 2024 deal that would see Rwandan troops withdraw from eastern DR Congo within 90 days, according to a version initialled by technical teams last week and seen by Reuters. Rwanda's top diplomat said Friday that DR Congo agreed to end all support for Hutu militants linked to the 1994 genocide. The agreement is "grounded in the commitment made here for an irreversible and verifiable end to state support for FDLR and associated militias", Rwandan Foreign Minister Olivier Nduhungirehe said at the ceremony. 05:55 Kinshasa and Kigali will also launch a regional economic integration framework within 90 days, the agreement said. "They were going at it for many years, and with machetes – it is one of the worst, one of the worst wars that anyone has ever seen. And I just happened to have somebody that was able to get it settled," Trump said on Friday, ahead of the two sides signing the deal in Washington. "We're getting, for the United States, a lot of the mineral rights from the Congo as part of it. They're so honoured to be here. They never thought they'd be coming." Trump was due to meet the foreign ministers in the Oval Office later on Friday. Rwanda has sent at least 7,000 soldiers over the border, according to analysts and diplomats, in support of the M23 rebels, who seized eastern DR Congo's two largest cities and lucrative mining areas in a lightning advance earlier this year. The gains this year by M23, the latest cycle in a decades-old conflict with roots in the 1994 Rwandan genocide, sparked fears of a wider war drawing in DR Congo's neighbours. Rwandan Foreign Minister Nduhungirehe called the deal a turning point. DR Congo Foreign Minister Therese Kayikwamba Wagner said the agreement must be followed by disengagement. The State Department did not immediately respond to a request for comment on the initialled version of the agreement. Economic deals Massad Boulos, Trump's senior adviser for Africa, told Reuters in May that Washington wanted the peace deal and accompanying minerals deals to be signed simultaneously this summer. However, the agreement signed on Friday gives DR Congo and Rwanda three months to launch a framework "to expand foreign trade and investment derived from regional critical mineral supply chains", according to the initialled version seen by Reuters. A source familiar with the matter told Reuters on Friday that another agreement on the framework would be signed by the heads of state at a separate White House event at an unspecified time. There is an understanding that progress in ongoing talks in Doha – a separate but parallel mediation effort with delegations from the Congolese government and M23 – is essential before the signing of the economic framework, the source said. DRC, Rwanda to sign US-mediated peace deal and end conflict 05:05 The agreement signed on Friday was set to voice "full support" for the Qatar-hosted talks, according to the initialled version. It also says DR Congo and Rwanda will form a joint security coordination mechanism within 30 days and implement a plan agreed last year to monitor and verify the withdrawal of Rwandan soldiers within three months. Congolese military operations targeting the Democratic Forces for the Liberation of Rwanda, a DR Congo-based armed group that includes remnants of Rwanda's former army and militias that carried out the 1994 genocide, are meant to conclude over the same timeframe. Reuters reported on Thursday that Congolese negotiators had dropped an earlier demand that Rwandan troops immediately leave eastern DR Congo, paving the way for Friday's signing ceremony. DR Congo, the United Nations and Western powers say Rwanda is supporting M23 by sending troops and arms. Rwanda has long denied helping M23, saying its forces are acting in self-defence against DR Congo's army and ethnic Hutu militiamen linked to the 1994 Rwandan genocide. "This is the best chance we have at a peace process for the moment despite all the challenges and flaws," said Jason Stearns, a political scientist at Simon Fraser University, specialising in Africa's Great Lakes region. Similar formulas have been attempted before, he added, and "it will be up to the US, as they are the godfather of this deal, to make sure both sides abide by the terms".
Euronews
a day ago
- Euronews
German official urges Apple and Google to ban AI company DeepSeek
A German data protection official has accused the Chinese artificial intelligence (AI) company DeepSeek of illegally transferring user data to China. Meike Kamp, Berlin's commissioner for data protection and freedom of information, reported DeepSeek to Apple and Google and asked the American companies to remove DeepSeek from their app stores. In a statement released on Friday, Kamp said DeepSeek did not provide 'convincing evidence' that users' data was protected, as is required by European Union law. 'DeepSeek's transfer of user data to China is unlawful,' Kamp said, adding that 'Chinese authorities have far-reaching access rights to personal data within the sphere of influence of Chinese companies'. 'Furthermore, DeepSeek users in China do not have the enforceable rights and effective legal remedies guaranteed in the European Union,' Kamp said. She said that Apple and Google must now review the report and decide whether to remove the app. Kamp said that her office had asked DeepSeek to either comply with EU laws for transferring data outside the bloc or pull its app from Germany, but that DeepSeek has not taken either option. Under the EU's General Data Protection Regulation (GDPR), companies are banned from sending data outside the region unless specific safeguards are in place in the countries where the data is sent. DeepSeek made waves in January when it launched its AI model, claiming it was created at a fraction of the cost of competitors. But studies have shown there are concerns over cybersecurity and safety, including DeepSeek-R1's susceptibility to generating harmful and biased content. As it is a China-based company, the country's law states that any data shared on mobile and web apps can be accessed by Chinese intelligence agencies, which is also generating national security fears. Italy banned DeepSeek from its app stores in January, citing data protection concerns. The country's data protection authority ordered a block on Hangzhou DeepSeek Artificial Intelligence and Beijing DeepSeek Artificial Intelligence – the Chinese companies behind the DeepSeek chatbot – to force them to stop processing Italians' data. The move comes after DeepSeek reportedly told the Italian authorities that it would not cooperate with a request for information.
