Lower Chinese imports of palladium and platinum are weighing on prices of the precious metals, highlighting weakness in commodities expected to benefit from the country’s shift towards higher consumption.
China’s net imports of platinum fell 56 per cent to 2.8 tonnes in February, the lowest level since 2009 according to HSBC. Palladium fared little better, with imports down 54 per cent.
Demand for platinum jewellery in China fell by 1.3 per cent last year and did not recover before the Chinese new year. The metal is popular for wedding rings and China consumed over 60 per cent of the world’s platinum jewellery last year, more than the US, western Europe, Japan, India and the rest of the world combined, according to the World Platinum Investment Council.