Johannesburg: The World Platinum Investment Council (WPIC) has estimated that global demand for platinum jewellery in 2015 at 2,850 thousand ounces (koz) will be 5% lower than the corresponding figure of 2,990 koz in 2014, mainly on account of weak demand in China. The projection was part of its fifth Platinum Quarterly data set which was released recently, based on figures from WPIC’s research partners SFA (Oxford). However, looking forward, the body sees a slight improvement in 2016 and believes that jewellery demand could rise marginally to 2,905 koz.

The report says that global platinum jewellery demand in Q3 2015 stood at 790 koz, up some 19% on the previous quarter as manufacturers in several of the larger markets prepared for strong selling seasons ahead. India was the strongest region in growth terms, with Q3 sales up over 20% quarter-on-quarter just before the start of the peak wedding season. The US registered 8% growth year-on-year in Q3 as platinum increasingly became the metal of choice for bridal jewellery with its price declining relative to white gold. Demand in Japan remained flat, and in China, while fabrication demand from jewellery manufacturers who were restocking ahead of the wedding season was up 10%, consumer demand continued to be muted. Overall, the platinum market continued to be in a deficit of 320 koz in Q3’15, larger than the previous three quarters.

Total demand rose 260 koz quarter-on-quarter (+13%) in Q3’15 to 2,295 koz as growth in jewellery demand, driven by restocking ahead of the wedding season and the national holiday in China, stronger investment demand and a slight improvement in industrial consumption offset the seasonal, northern hemisphere summer holiday, dip in automotive demand. Total platinum supply in Q3 2015 of 1,975 koz reduced by 40 koz quarter-on-quarter, and increased by 20 koz year-on-year, with higher post-strike mining supply offset by a fall in supply from recycling.