Demand for platinum jewelry in China is expected to tumble 21 percent this year as rising prices eat into retail buying, an industry report said yesterday.
The demand is expected to fall to 51.3 tons this year, Britain's Johnson Matthey, a chemical company, said yesterday in Shanghai.
"The high-rising prices erode purchasing power of retail consumers, especially in the China market which is sensitive to pricing," the company said.
Platinum prices rose to an average of US$1,581 an ounce in the first three quarters of this year, up 38 percent annually.
The company said it expects platinum prices to rise to an average of US$1,750 an ounce in six months, and to fluctuate between US$1,550 and US$1,900 an ounce. The company doesn't see any huge buying until prices drop below US$1,500 an ounce.
China is the world's biggest consumer of the white metal, accounting for over a quarter of global total demand.
China's total demand for the metal, including for use in jewelry, autos and chemicals, is expected to decline to 61.7 tons this year, down 8 percent from last year's.
