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Spot platinum prices rose on Thursday as the start of the futures trading on the China’s Guangzhou bourse provided support to the overall liquidity for the metal.
The contracts are the first domestic price-hedging mechanism for platinum and palladium in the world’s second-largest economy, where the metals are used by auto makers and other industries, including jewellery and investment products.
Guangzhou’s platinum futures for June delivery jumped by 6% on their first day of trading, while palladium gained 1.5%.
Spot platinum prices in London were up 1.0% at $1,604 per troy ounce by 12:26 GMT after hitting $1,641, their one-month high. Spot palladium was steady at $1,423.
China is the world’s largest consumer of platinum group metals, relying heavily on imports. Accounting for nearly 30% of global platinum consumption and 20% of palladium, it has been lacking domestic price guidance, leaving it to track international market moves, analysts said.
“This launch is transformative for China’s platinum group metals market,” said Weibin Deng, head of Asia Pacific at the World Platinum Investment Council.
“For the first time, domestic industrial users and fabricators have a direct, regulated tool to hedge against global platinum and palladium price volatility,” he added.
Global prices of the two platinum group metals have surged this year, driven by tightening supply and renewed investor interest following a record-breaking run for gold and silver.
Spot platinum and palladium are up 76% and 56%, respectively, so far in 2025.
(By Ella Cao and Polina Devitt; Editing by Louise Heavens)