Platinum demand from China is expected to remain strong as the automotive market helps to bolster the sector.

Johnson Matthey market research and planning director Mike Steel says the rapidly growing automotive market - the fastest growing in the world - will help spur platinum demand, particularly as emission-control regulations call for a greater use of autocatalysts.

Mr Steel told Mining Weekly that production of light-duty vehicles is expected to reach about 7.4 million units a year by 2008.

Of these, around 70 per cent are equipped to meet existing emission standards - equivalent to Euro Stage I requirements.

Indeed, the emissions legislation has become an increasingly significant factor in dictating platinum demand.

Euro Stage II standards were introduced to Beijing and Shanghai in January and March last year respectively, with the standard being rolled out nationwide for July this year.

When Euro Stage III compliance requirements are introduced in Beijing and Shanghai Mr Steel says he anticipates over 90 per cent of light-duty vehicles using pgm catalysts.

In addition, these catalysts will have to carry a higher ratio of pgms in order to meet the new standards.

Nevertheless, jewellery manufacture remains the dominant force behind platinum demand in the country, according to Impala Platinum manager of strategy and business development Bob Gilmour.

Mr Gilmour is predicting a ten per cent fall in the Chinese platinum jewellery market, the result of the rising metal price.