US CPI Data Exceeds Expectations, Spot Platinum Market Premium Raised on Strong Consumption [SMM Daily Review]

Futures platinum prices came under pressure and fell today. Last night, the US released September CPI data: up 3.7% YoY, with core CPI up 2.6% YoY, both above market expectations. Rising energy prices were a key factor pushing up overall inflation, while core services inflation remained sticky. After the data release, the probability of a 25bp rate hike in October was raised to nearly 50%. In the morning session, the most-traded GFEX platinum contract PT2612 closed at 393.55 yuan/g, down 2.96%; the price spread between the best ask price for SGE Pt9995 and the GFEX PT2612 contract widened to around 20 yuan/g.

In the spot market, mainstream quotations from suppliers were around a premium of 0.5 yuan/g over PT2612. Supplier offers remained relatively firm, with most transactions done at a small premium to the most-traded GFEX contract. Discounted cargoes were hard to find in the market. As futures prices fell, downstream purchase willingness was relatively high. Overall, spot platinum market trading was relatively active today.