Platinum Climbs to Two-Month High

This week, macro signals were mixed. Early on, surging Treasury yields and hawkish Fed expectations weighed on precious metals. Mid-week, the Treasury expanded buybacks, pulling long-end yields lower and sparking a rebound. Yields remain high and the Fed’s hawkish tilt keeps downside risks alive, but debt concerns and central bank buying offer solid medium-term support. Focus shifts to Jackson Hole and US-Iran developments.

[SMM Flash] China’s expanding AI, optical communications and semiconductor sectors are driving stronger demand for iridium, particularly for high-temperature crucibles used in crystal growth. A processor in Shaanxi reported that its iridium processing volume in H1 2026 had already matched the full-year 2025 level, while a 1-kg iridium crucible was valued at around RMB 2 million (approximately USD 300,000). The company said such crucibles accounted for about 25% of its processing volume. Iridium prices have also surged, with prices exceeding USD 7,800/oz on August 4, compared with above USD 4,500/oz at end-2025, representing an increase of more than 70%. Continued investment in AI infrastructure, optical communications and semiconductor manufacturing could provide further support for iridium demand, although the small market size and limited supply data make the overall demand impact difficult to quantify.

This week, platinum and palladium experienced wild swings with rapid switches between long and short positions. U.S. Treasury yields became the core marginal variable, and the U.S. Treasury's expansion of long-term bond buyback scale provided strong support for the valuation repair of precious metals. Spot market premiums fluctuated slightly with futures, and overall consumption remained sluggish. End-users mainly focused on restocking as needed, with insufficient willingness for active stockpiling.