Platinum jewelry demand to fall 14% in 2010: report

摘要

Gross global demand for platinum in the njewelry sector is forecast to fall by 14% in n2010 to 2.42 million oz as retailers and nconsumers reduce purchasing in response nto relatively high prices, Johnson Matthey nsaid Tuesday. “Recycling of platinum in the njewelry sector is expected to increase by n30% to 735,000 oz,” the UK-based PGMs nrefiner and fabricator said in its Platinum n2010 interim review. “As a result, net nplatinum jewelry demand is expected to nfall by 25% to 1.69 million oz. “Relatively nhigh platinum prices are forecast to reduce ngross global platinum demand for jew-nelry fabrication by 390,000 oz in 2010. n“Platinum traded higher in the first nine nmonths of 2010 than for the full year of n2009,” JM said. “This had the effect of nlowering wholesale purchasing of platinum nby the jewelry sector, particularly in the nprice-sensitive Chinese market where full nstock levels, thanks to last year’s lower nprices, and reduced consumer spending nthis year are expected to impact demand.” nWhile China’s jewelry demand was strong nin 2009, gross demand in 2010 is fore-ncast to fall by 430,000 oz to 1.65 million noz, the report said, as higher platinum pric-nes have cut purchasing by wholesalers and nretailers, with heavy buying only emerging nwhen platinum’s price has dipped below n$1,500/oz. “Evidence suggests that full nstock levels, as a result of stock building nin 2009, have also reduced gross new ndemand in China,” JM added. Meanwhile, nthe elevated price levels have encouraged ngreater scrapping of old platinum jewelry, nraising recycling levels by 36% and contrib-nuting to a reduced net demand figure of n1.2 million oz. In contrast, North American nplatinum jewelry demand is seen growing nby 45,000 oz to 180,000 oz in 2010 on nimproved economics and increased con-nsumer confidence, the report added.