The Chinese platinum jewellery market remains robust according to "anecdotal evidence" cited by Platinum Guild International (PGI).

PGI says that after a difficult period of escalating prices stability is beginning to return, with the group's chief executive expressing confidence in platinum's ability to bounce back.

"If prices can hold steady, I think there is an opportunity for offtake to increase," said James Courage.

"It is early days to give a definitive response, but soundings from the May holiday, a very important buying period in China, showed in the larger cities that sales of plain jewellery were substantially up in some of the key retailers," he told Reuters.

"The jewellery industry has adjusted to higher-priced platinum and is finding there is still strong consumer demand for the product," he added.

Mr Courage's backing for the industry comes in light of Johnson Matthey's latest analysis of the platinum market, which indicates that Chinese platinum jewellery purchases fell by 19 per cent last year.

White gold was one of the sectors to benefit, with palladium – which is used to help forge the alloy – proving increasingly popular.

Palladium sales in the Chinese jewellery industry rocketed in 2004, reaching 700,000 ounces in 2004.