Demand for platinum in China will continue to grow, the strategy director at research firm Emerging Markets Focus has stated.

Dr Martyn Davies told Mining Weekly that platinum imports into China had surged over the last five years driven by platinum jewellery sales and the use of platinum in autocatalysts.

The increasing popularity of platinum jewellery in China has seen the country overtake Japan as the largest consumer of platinum jewellery, he explained. Retail sales of platinum jewellery are likely to continue to increase as the Chinese economy continues to grow.

However, Mr Davies warned that deregulation in the gold market could see demand for platinum jewellery slow, as the alternative precious metal grew more attractive.

The phenomenal growth in Chinese car production, which increased by over one third in 2002, has seen demand for industrial platinum rocket as well.

As of last year all vehicles sold in Beijing have to conform to Euro II emission targets, driving demand for platinum to be used in auto-catalysts.