European demand for platinum jewellery will rise next year despite a small global drop, according to Johnson Matthey.
In its Platinum 2013 Interim Review, the chemicals and precious metals company said: “Gross demand [globally] for platinum in jewellery will slip by 1.4% to 2.74 million ounces,” putting the expected fall mainly down to Chinese jewellery sales “easing off”.
But it added that “higher demand is expected in Europe, North America and India.” The predictions, if correct, will mark a shift in growth from the burgeoning Asian markets back to Europe, where economic recovery is materialising in many of the larger economies.
Notably, the agency’s predictions will also mean that growth in platinum demand is likely to coincide with a rise in the price of platinum. This is because of “strong offtake by industrial users and investors”, which will “lift gross platinum demand by 4.9% to 8.42 million ounces.”
The report also said production in South Africa will be lost due to “one-off factors such as strikes and safety stoppages,” pointing out that these have already totalled around 100,000 oz in the first half of the year.
“Further strikes or stoppages in the final quarter of 2013 could eliminate any increase in South African supplies,” the report added.