Platinum and palladium surge violently, spot consumption remains sluggish [SMM Daily Review]

Published: Aug 5, 2026 12:20
Platinum prices surged sharply today. News front, the US Department of Commerce released an announcement on August 4 planning to add 14 downstream derivative products of steel, aluminum, and copper into the scope of Section 232 tariff control. Although the document did not directly mention platinum group metals, the market interpreted it as a signal of continuous escalation of US trade tariff policy tools. Coupled with US Treasury Secretary Bessent's statement on August 4 that the US and Iran were expected to reach an agreement on August 4 or 5 to reopen the Strait of Hormuz, international oil prices pulled back significantly, inflation expectations eased, leading to a pullback in expectations for US Fed interest rate hikes, and the precious metals sector as a whole got a boost. In early trading, the most-traded platinum contract PT2610 on GFEX closed at 432.5 yuan/g, surging 7.04%. The inverted spread between the best ask price of Platinum 9995 on the Shanghai Gold Exchange and GFEX PT2610 remained around 6 yuan/g. Spot market, mainstream quotations for platinum were at a discount of 3.5 yuan/g to 2 yuan/g against the PT2610 contract. Although the mainstream quotation premiums/discounts did not change significantly with the sharp rally in futures, downstream purchase willingness was extremely low, and the bid-ask spread widened. Suppliers, with limited willingness to sell at large discounts, opted to hold prices firm in their offers. Overall, trading in the platinum spot market was very sluggish today.

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