China'S Platinum Market Is Weak When The Platinum Week Opens.

During the opening of Platinum Week (Bo Jinzhou) in London recently, more forums and experts have pointed to the impact of Chinese consumers on the jewelry market, especially the platinum market, during the annual exchange week.

It is reported that China is the largest in the world.

The jewelry market, while analysts from gold analysts said it is expected that there will be a 2 digit decline in China's demand for platinum jewellery in 2016.

In the past few days, we reported the results of jewelry retailers and jewelry manufacturers from China and Hongkong.

To a certain extent, to a certain extent, compared with foreigners who have always been cautious in consuming psychology, the caution of Chinese consumers is a drag on the overall demand of the jewelry industry.

From 2015 to China

In the case of a 7% decline in sales, which led to a 4% drop in global platinum sales, this could trigger a sharp fall in demand in the global platinum market.

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Global platinum prices are falling. The world's largest platinum jewelry market, China's consumer interest in platinum jewelry is also declining, making global platinum demand facing a sharp decline in risk.

China is currently the world's largest platinum jewelry market, accounting for more than 60% of the world's processing consumption in 2015.

The platinum forum, held by GFMS, opened in London on Monday.

Analysts at GFMS said that demand for platinum jewelry in China is expected to fall close to two digits this year.

China's platinum jewelry consumption fell 7% in 2015, resulting in a 4% reduction in global platinum jewelry demand.

With economic growth slowing to a 25 year low, China's consumer behavior has changed markedly, and consumer spending on luxury goods has decreased.

Clapp Vic, director of Precious Metals Insights in Hongkong, said: Philip:

"It's not that consumers no longer spend, but they spend less money on jewelry than before.

The purchasing power that consumers can freely control is being spent on other aspects - household appliances, and of course tourism.

More and more Chinese tourists travel abroad, which means that fewer and fewer people patronize department stores during important holidays.

Platinum is one of the most important raw materials for vehicle catalytic purifier, so the vehicle business is the largest consumer of platinum, and its demand accounts for 40% of the total global demand.

However, according to the region, Chinese jewelers are the largest single consumers of platinum, buying a total of 1 million 561 thousand ounces of platinum last year.

The anti-corruption action launched by the Chinese government in 2012 has had a huge impact on the luxury industry.

Officials are reluctant to be found buying expensive jewellery, which has led to a decline in jewelry sales.

In addition, gold has become a strong opponent of platinum in terms of market share, especially artificial platinum (gold alloy) has become a popular substitute.

In terms of market sales, retailers have been paying more attention to gold in recent years.

Gold prices plummeted in early 2013, pushing real gold sales to record highs.

However, platinum prices fell below $1000 / ounce for the first time since 2009, and did not promote platinum consumption.

At the same time, although the price of platinum has been lower than the price of gold since the beginning of 2015, the price difference has not been reflected in China's platinum consumer market.

A spokesman for Zhou Dafu, China's largest jewelry retailer by market value, said:

"Unlike gold jewelry sold by weight..."

Our platinum jewelry is sold at a fixed price.

Therefore, the fluctuation of platinum price has not affected the demand of platinum jewelry very much.

The price elasticity of platinum is partly due to the fact that platinum is more hardness than gold, and the cost of processing platinum into accessories is higher.

Platinum jewelry is usually inlaid with jewelry, so the relationship between processing cost and platinum price is not so large.

Consumers' demand for price pparency of platinum jewelry is also not as high as gold, because buying gold is often for investment purposes.

However, analysts say that consumer awareness of platinum prices is rising. Some consumers are questioning whether the price of platinum jewelry at a discount price is worth buying.

Alexander, an analyst at GFMS, said: "CAmeron Alexander"

"Today's consumers know much more.

They are fully aware of the price structure and know the level of platinum spot trading, so when they see the price of platinum is so low, but the retail price of platinum jewelry is almost no drop or only a small reduction, they will think that buying is not worth it. "

In addition, a GFMS analyst pointed out in a report last Thursday that platinum prices may have been low this year, and the market is back to supply shortage, which is expected to make the average platinum price in 2016 reach 1005 US dollars / ounce.

In 2016, GFMS expects the market to return to a shortage in 2016 in the platinum group metals survey report. In 2015, a surplus of platinum rose due to the increase in the supply of the field.

GFMS said that the main reason was that the output of the South African mine increased by 40%, and the platinum market oversupplied 5.4 tons last year.

But this growth is expected to slow in 2016.