Demand for platinum in China is expected to dip slightly this year, according to new analysis from industry experts.

Analysts and traders are anticipating a small fall in demand as a result of record high prices, and competition from cheaper alternatives such as white gold.

Liu Shan'en, an analyst at state-backed Beijing Gold Economic Development Research Centre, captured the general sentiment among industry observers, telling Reuters: 'China has taken the platinum market by storm since the mid-1990s, but I'm not so optimistic this year.'

'With where prices are headed, demand might stay flat or even fall for various reasons. For one, we're seeing white gold taking away some of platinum's market share,' he added.

Demand from China is expected to either stay stable or drop by as much as ten per cent in 2004.

Pressure from soaring prices has been heightened this year after Anglo Platinum, the world's largest platinum producer, announced a slow down in the implementation of its expansion programme.

China is one of the world's biggest platinum markets, and used more than 1.2 million ounces of the precious metal in 2003, accounting for around 18 per cent of global demand, according to statistics compiled by Johnson Matthey.