Page 14 - Bollion World Volume 4 Issue 8 August 2024

Bullion World | Volume 4 | Issue 8 | August 2024

Shanghai Platinum Week 2024

Mr Edward Sterck, Director of Research, the World Platinum Investment Council

Established in 2021 to create one of the most
influential and important annual events for the global
platinum group metals (PGMs) sector, the fourth
Shanghai Platinum Week (SPW) took place between 9
and 11 July 2024, co-organised by the World Platinum
Investment Council (WPIC), Anglo American plc, China
Gold Association, and the China Precious Metals
Industrial Committee

Topics under discussion during SPW 2024 ranged
from the challenges facing PGM supply (due to both
mining and recycling constraints) to current and future
demand drivers (autocatalysts, green hydrogen and
future technologies). SPW underscored the strong
investment case for platinum, as challenges weigh on
supply, while demand finds support across a diverse
number of end-uses. With such a broad range of issues
under discussion there were so many points of interest,
but the key takeaways from WPIC’s perspective are
highlighted below, emphasising some of the dynamic
trends within the domestic China PGM market, as well as Mr Edward Sterck
internationally.

Arguably, the most impactful announcement was the
Guangzhou Futures Exchange (GFEX) using SPW
2024 to reveal the details of the first platinum and
palladium derivatives to be launched in China.
These physically-settled platinum and palladium futures
are set to transform domestic price risk management,
which will minimise costs for the fabricators of platinum
containing products, reducing sales premiums and
likely boosting demand for platinum products. Uniquely,
platinum and palladium in the form of both ingots and
sponge (pure metal in powder form), as opposed to just
ingots, will be accepted as ‘good delivery’ for settlement
of contracts. The ability to take delivery of sponge could Commenting on the announcement, Mr. Chen
be transformative for industrial users of PGMs, as well as Xuanchen, R&D Lead of Platinum and Palladium Futures
automakers, as sponge is the main form typically used at GFEX, highlighted the impact this was likely to have
for their manufacturing purposes. No other exchange in on both the domestic and global platinum and palladium
the world currently allows delivery of sponge.
markets:

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