Chronicle Editor
Nkosilathi Sibanda, Business Correspondent
THE Chinese jewellery market is set to boost trade of platinum, as demand for the metal continues to surge in the Asian country, in what experts say could be an advantage for the local industry at a time when international markets sources are drying up due to Covid-19 closures.
The World Platinum Investment Council (WPIC) has placed a forecast of a huge demand by the Chinese jewellery sector this year, in an all-time high in seven years. Jewellers prefer platinum because it is resistant to tarnishing and discolouration due to chlorine and other chemicals. These factors, along with its strength and white lustre, have made platinum an increasingly popular choice.
WPIC is a global market authority on physical platinum investment that was formed to meet the growing investor demand for objective and reliable market intelligence.
The WPIC has positioned the supply and demand of the platinum metal to improve as the year ends, spelling a huge leap from the depressed figures recorded in the second quarter of last year.
Global Platinum jewellery demand bounced back to a 27 percent rise in the last quarter of 2020, with the Chinese market accounting for 14 percent share as reported by WPIC. The Chinese market took advantage of the low platinum prices in the better part of last year, and managed to lure imports at a time when some countries were still grappling with the Covid-19 contagion.
“Low prices prompted strong imports of platinum into China during the early months of the Covid-19 by jewellery manufactures. As China’s government is expected to maintain their successful virus containment protocols, consumption is expected to improve, with platinum jewellery demand expected to increase in 2021 by 13 percent.”
WPIC chief executive officer Mr Paul Wilson said the jewellery industry was not the only sector that will spur platinum growth, but the automotive industry as well.
“As we now consider the economic cost of the pandemic, platinum has a role to play in providing other solutions.
Questions are being raised about how quickly we transition from the internal combustion engine to electric vehicles and the vast sums needed to support the associated infrastructure.
Platinum plays a key role in the production of green hydrogen and in fuel cells for electric vehicles. Material demand growth from this will be realised in the five-to-10-year period,” he said in the recent WPIC quarterly report.
Platinum production in Zimbabwe was this year targeted to reach 69 350 tonnes driven by expansion of existing capacities and new investments.
Online Reporter