China is the single largest consumer of platinum globally (Figure 1), accounting for around 29% of global platinum demand in 2024. In terms of demand from China across the four main demand segments for platinum, the breakdown for 2024 was as follows: automotive demand 17%; jewelry demand 20%; industrial demand 31%; investment demand 32%, which accounts for 64% of total bar and coin demand, including investment bars equal to or above 500g. Moreover, China is increasingly globally dominant in several PGM-consuming industries (Figure 2).

^{Source: Statista, Enerdata, WPIC Research}

In 2024, China became the single largest market for platinum bar and coin investment demand globally (Figure 3), accounting for 64% (226 koz) of total platinum bar and coin demand, including platinum investment bars equal to or over 500g. This position is forecast to be maintained in 2025 with demand reaching 281 koz.

This compares to 2019, when platinum investment demand in China reached 31 koz and accounted for 11% of global platinum bar and coin demand. The rapid rise has been due to market development activities, especially the introduction of larger investment bars of 500g and above, which carry lower fabrication costs and therefore attract higher net worth investors.

For example, China Gold Coin Group (CGCG) made history at the end of 2024 by launching its first-ever large-size platinum investment bar. The 1kg bar, made of 99.95 per cent pure platinum, carries a specially commissioned design inspired by the “Fish Transforming into a Dragon” legend, which is renowned in China. Its launch was seen as especially significant, as CGCG is a state-owned entity that plans and coordinates domestic demand for investment metals in consultation with the Chinese central bank, reflecting the extent to which interest in platinum as an investment asset is growing in China.

Between 2014 and 2023 China’s platinum jewelry demand declined from 2.0 Moz to 0.4 Moz (-14% CAGR), affected by broader trends, such as declining marriage rates and changing consumer preferences as evidenced by stronger competition for discretionary spend from growing consumer spending in other areas, such as experiences (travel and dining) and on alternative luxury goods (cars, wine and art etc.).

Further, during this period, platinum jewelry demand in China also faced growing competition from investment-grade 24 carat gold jewelry due to the latter’s shorter process time and affordability, diverging prices of the underlying metals (supporting gold’s quasi-investment interest), fashion trends including the patriotic consumer trend of “China-Chic” (“Guochao”) and platinum jewelry’s higher buy/sell spreads.

However, platinum jewelry demand in China registered growth in 2024, albeit slight, increasing 1% to reach 412 koz. This is set to improve further in 2025 with growth of 15% to 474 koz forecast, with further upside to the forecast indicated. The key driver, both last year and this, is platinum’s deep discount to gold, with the latter’s price gain deterring consumers to the benefit of platinum and encouraging fabricators and wholesalers to stock platinum.  Given the nature of the China market, where precious metal jewelry has a quasi-investment status, there is a crossover being seen with the expansion of the range of platinum investment bars available occurring in large part due to jewelry fabricators moving into the investment space as well.

China has no meaningful domestic resources of platinum, while it is a mineral that has been designated as being of strategic importance by the Chinese government due to its use in automotive and industrial applications as well as in PEM technologies. Including demand for platinum catalysts for fuel cells as well as electrolysers, WPIC projects that China’s hydrogen-linked demand for platinum will approach one million ounces per annum by the late 2030s.

Since 2019, imports of platinum into China have exceeded identifiable needs. It is difficult to divine exactly what has been driving the excess imports, but intentionally or otherwise, the country has effectively been building a strategic reserve of this critically important metal. 

Given that total annual demand for platinum today is about 8 Moz for all end uses, China’s needs, combined with a lack of domestic supply, mean it is reliant on importing metal and could be left short of platinum in the future. China can significantly reduce the risk to industrial users of platinum by increasing the amount of PGMs on Chinese soil. Growing platinum investment holdings in China are helpful in this regard, as is the renewed interest being seen in platinum jewelry, which effectively provides a domestic reserve of platinum due to its quasi-investment status.

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