Platinum price consolidated on a strong note intraday, spot market saw more quotations but consumption remained poor [SMM Daily Review]

[SMM Flash] China’s platinum jewellery market is evolving as younger consumers increasingly favour understated “quiet luxury” and products with perceived intrinsic value, according to a Shanghai Daily report published on August 20. Platinum Guild International (PGI) China said platinum is moving beyond its traditional association with wedding jewellery, with younger consumers increasingly purchasing pieces for daily wear and fitness-related lifestyles. PGI also highlighted the expansion of platinum jewellery marketing through platforms including JD.com, Douyin and Xiaohongshu, as retailers seek to reach digitally active consumers. The development could broaden platinum’s consumer demand base in China, although the report’s comments on the metal’s scarcity and energy-transition role should be viewed separately from the jewellery market trends. PGI cited growing interest in platinum’s durability and hypoallergenic properties among consumers participating in activities such as Hyrox. The report also said a Q4 campaign on JD.com last year resulted in participating retailers doubling year-on-year sales, with half of buyers being new customers. Shanghai remains a key market, while Shenzhen and Chengdu are also emerging as important centres for platinum jewellery consumption.

[SMM Flash] Platinum futures rose above USD 1,780/oz on August 19, reaching a two-month high as lower bond yields increased the appeal of non-yielding metals. Supply concerns, including potential power disruptions and maintenance bottlenecks at South African mines, continued to support prices, while the market is expected to remain in deficit. Meanwhile, the US Treasury’s expanded buyback operations helped push borrowing costs lower. On the demand side, AI and data-centre expansion are emerging as potential new sources of platinum demand, with Valterra Platinum estimating AI-related demand could increase fivefold by 2030. Rising hybrid vehicle production is also supporting near-term autocatalyst demand, although the continued growth of EV sales remains a longer-term headwind. Uncertainty over shipments through the Strait of Hormuz has meanwhile kept some industrial buyers cautious.