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Following earlier rallies in gold and silver futures this year, platinum futures in China also saw a notable price increase, primarily driven by limited supply and growing demand from the clean energy sector.
Yesterday, platinum futures on the Guangzhou Futures Exchange rose by 0.7%, reaching a peak of CNY485.75 (USD68.95) per gram. The previous day, prices surged as much as 7%, prompting a temporary halt in trading. The contract was introduced to the exchange on November 27, with an initial benchmark price of CNY405.
On the New York Mercantile Exchange, platinum futures climbed to USD1,913.90 by yesterday, representing roughly a 23% increase over the past month. This year, prices have skyrocketed by 110%, far surpassing gold, which has gained 63% during the same period.
Experts say that the recent surge in platinum prices is fueled by several factors, including ongoing constraints in spot supply, supportive policies for the renewable energy industry, and shifting geopolitical tensions.
White precious metals such as platinum and silver are not only used for hedging but are also deeply linked to industrial applications and the global energy transition. Their price dynamics have started to diverge from the traditional framework of precious metals, creating a green premium, according to industry analysts.
The global platinum market is currently experiencing a severe deficit, with an expected shortfall of around 26.4 tons this year. Meanwhile, demand is projected to fall by 4%, totaling approximately 244.8 tons, based on the latest data from the World Platinum Investment Council.
The recent rally in platinum prices isn’t just a fleeting commodities boom but reflects broader shifts in global capital toward de-dollarization and renewable energy investments. Market observers note that future movements will depend on factors such as interest rate policies in the U.S., geopolitical tensions, and supply disruptions, particularly in South Africa.
Long-term, progress in hydrogen energy development and advances in recycling technology should also be closely watched as potential catalysts for the market.
The platinum market is expected to remain tight into next year, according to a recent forecast from Heraeus Group. Since platinum is generally less expensive than gold, increased demand from the jewelry sector could open new growth avenues for the metal.
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