JOHANNESBURG (miningweekly.com) – The growth in demand for platinum applications in China is extremely high, making detailed access to the China market hugely advantageous.

Providing this detailed access from July 8 to 11 will be the far-reaching Shanghai Platinum Week 2024, which is sandwiched between the London Platinum Week in May and the New York Platinum Week in September.

The Shanghai event takes place with simultaneous translation amid China reinforcing itself as the world’s largest user of the platinum group metals (PGMs).

The crucial event will also unfold for the fourth time in an emerging new era where vehicle manufacture in China is increasing beyond that of the US, making the Asian country’s market extremely important from a palladium, platinum, and even rhodium perspective, World Platinum Investment Council (WPIC) CEO Trevor Raymond noted in a Zoom interview with Mining Weekly. (Also watch attached Creamer Media video.)

Moreover, platinum is integral to China’s commitment to global decarbonisation by 2060, with the country’s strong interest illustrated by last year’s Shanghai Platinum Week attracting more than 1 200 in-person delegates from more than 400 different organisations, as well as 180 000 online attendees.

Although the second week of July is still some way off, confirmed attendees include the likes of Anglo American, Northam Platinum, the Bank of Montreal, the Chicago Mercantile Exchange, and Japan’s JPX, with Guangzhou Futures Exchange and many financial, recycling and industrial organisations within China indicating their intention to be there.

Although roughly a third of all PGMs go into China, the country is one of the more opaque markets for non-Chinese market participants, which the week sets out to remedy by providing insight into where China’s value proposition for PGMs lies.

HYDROGEN AND EXTENDED RANGE ELECTRIC VEHICLES

Even ahead of the agenda being finalised, it is already patently clear that hydrogen is going to be a big feature across the conference, along with growing use of PGMs in the semiconductor industry and in the extended range electric vehicle segment, WPIC Director of Research Edward Sterck spelt out in the same Zoom interview.

Extended range electric vehicles are battery electric vehicles that also have internal combustion engines that effectively recharge the battery and extend the range of travel.

Most extended range electric vehicles have ranges of about 1 000 km on full battery charge and full fuel tank, and their exhaust treatment systems continue to contain PGMs.

PLATINUM AS PART OF RETIREMENT INVESTMENT

Chinese investors have known platinum for many years as a jewellery and with more people saving for retirement, having platinum as part of a retirement investment makes a lot of sense.

There are no platinum mines in China and having platinum on Chinese soil is seen as a good idea.

“We know that supply growth and demand growth don't always match, so we've encouraged the Chinese policymakers to recognise the importance of platinum investment demand, and of having more platinum metal on Chinese soil as a certain support to the industrial use of platinum over time.

“Having the Shanghai Platinum Week on the global calendar is probably ideal timing. The four-year gestation period has certainly been well worth it and we look forward to Shanghai Platinum Week becoming something that is really helpful to investors around the world and participants in the broader PGM industry,” said Raymond.

Following the Shanghai Platinum Week, international participants will be taken to meet a number of the hydrogen-related companies in the Shanghai region, and they will also be given an opportunity to meet and converse with Chinese policymakers.

Those wanting to know more about the event should go to Shanghai Platinum Week.com. where all of the details are available, along with the registration process. Also listed are the emails of WPIC contacts Yvonne: yxu@platinuminvestment.com and Grace: wlin@platinuminvestment.com

WPIC IN SHANGHAI SINCE 2017

With an office in Shanghai since 2017, the WPIC team is able to provide PGMs knowledge to China, which helps investors to make more informed investment decisions.

All the current PGMs uses are represented in China, where there is a strong growth in the automotive, industrial, jewellery, and investment sectors.

While significant awareness of PGMs has been created, market liquidity remains an issue for investment and industrial participants.

To increase participation, great effort is being made to ensure that a platinum and palladium future is available to enable local users of these metals to hedge price risk.

Achieving this will be a paradigm shift for investment demand and for local industrial users to be able to access a future that is listed in China hedge their price risk.

This could also unlock the possibility of a physically backed exchange traded fund in China.