China Bridal Rings Lift Platinum Demand

A fashion for platinum wedding rings among China’s new middle class contributed to a record demand for the precious metal last year, an industry report said Monday.

High demand from China’s jewelry sector more than compensated for a decline in platinum’s use for auto catalysts and investment products, according to the industry study released by British refiner Johnson Matthey PLC.

Western sales of platinum to China in 1996 were 200,000 ounces contrasted with 130,000 ounces in 1995.

“Consumer demand initially emerged in the Shanghai area in the early 1990s, stimulated by the promotion of diamond-set jewelry to China’s new middle class,” Johnson Matthey said.

Platinum bridal rings are increasingly popular among young Chinese seeking to break with their parents’ traditions. Faceted platinum bands are given for the engagement, and diamond-set rings at the wedding. Bridal adornments account for about two-thirds of the platinum jewelry market in China, the report said.

Gold has traditionally been used, as much for investment as adornment, the report said. Silver wedding rings also are traditional.

China, well behind Japan, is the second-largest consumer of platinum in jewelry. Two-thirds of total Chinese platinum use last year--140,000 troy ounces--was for jewelry, the report said.

That is less than a tenth of Japanese use of platinum for jewelry, which remained unchanged at 1995’s record of 1.48 million ounces, said the report.

The Western world platinum market was marginally in surplus last year. Supply, dominated by South Africa, was at 4.90 million ounces compared with 4.99 million ounces in 1995. Demand was at a record 4.88 million ounces compared with 4.84 million ounces in 1995, said the report.