China Imports the Most Platinum in a Year as Squeeze Tightens
Tue May 20 2025
Chinese jewelers and investors imported the most platinum in a year last month, as the precious metals relative stability enhanced its attractiveness over surging and volatile gold.
Imports of platinum into China the worlds biggest consumer totaled 11.5 tons in April, according to data released Tuesday. Global demand for the metal, which is also used in catalytic converters and laboratory equipment, is expected to outstrip supply for the rest of this decade, according to Bloomberg Intelligence analysts.
The sprawling Shuibei market in Shenzhen, a major center for jewelers with more 10,000 retailers on site, offers a snapshot of the shift. The number of platinum retailers in the sprawling market has tripled over the course of a month, according to Yang Yang, a deputy general manager at one of the largest in the market.
Some gold workshops are now trying to tap into the surge in demand, she said. But the transition isnt easy, as the two metals require very different craftsmanship. Platinum fabricators are overwhelmed, with retailers now facing unprecedented wait times that have doubled, she added.
According to Deng Weibin, the Asia-Pacific head of the World Platinum Investment Council, the slump in gold jewelry sales that started last year due to high prices has had merchants rethink their strategies.
Long-time gold jewelers are shifting gears to platinum products as gold has become too expensive and volatile, said Deng, wholl be among the traders, miners, and analysts converging in London from Tuesday for the annual Platinum Week gathering. Platinum has come in to balance out the risks and price swings of gold.
The jump in Chinese demand is recent. In the year to April 30, the nations total platinum imports actually fell 31% compared with the previous 12 months.
In the first quarter, bar and coin demand in China more than doubled, pushing it ahead of North America to become the largest market for platinum retail investment, WPIC data shows.
The growing demand threatens to further deplete already shrinking above-ground stocks. The market was already tightening on expectations that slowing electric vehicle adoption will keep diesel cars on the road longer and with them, demand for platinum in catalytic converters.
While prices are still well below levels seen in 2021 when top producer Russia invaded Ukraine and a spike in catalytic thefts sent the metal soaring the metal has rallied 10% so far this year, partly due to expectations of a tighter market.
Its likely inventories have bottomed out and some speculative buyers have stepped in, said Nikos Kavalis, managing director at consultancy Metals Focus Ltd. It is unusual because during the previous couple of years or so, every time the price was at current levels there was very little appetite.
With demand running high, the shortage is likely to persist for some time, said Yang Yang. I expect the tight supply to continue through June and July.
Source: https://uk.finance.yahoo.com/