Core Insights - The approval of platinum and palladium futures and options by the China Securities Regulatory Commission marks a significant step in the development of China's platinum group metals derivatives market, providing authoritative price signals and risk management tools for the green low-carbon industry [1] - Platinum and palladium are essential materials for various green industries, including automotive catalytic converters, hydrogen energy, and chemical applications, highlighting their strategic importance in the context of China's carbon neutrality goals [1][2] Supply and Dependency - China's dependence on imports for platinum and palladium remains significant, with 56% and 29% of its supply coming from abroad, primarily from South Africa and Russia [2][3] - The domestic supply of platinum and palladium is limited, with only a few small-scale mines in regions like Yunnan, Sichuan, and Qinghai, which poses challenges for developing a competitive mining sector [2] Recycling and Sustainability - The recycling system in China plays a crucial role in supplementing limited primary resources, with recycled platinum and palladium accounting for approximately 96% of total production in 2024 [3] - The foreign dependency for platinum has decreased from 61% in 2020 to 56% in 2024, while palladium's dependency has dropped from 43% to 29%, indicating improved supply security [3] Consumption Trends - China is the largest consumer of platinum and palladium globally, with consumption shares of 26% and 23% respectively in 2024, driven by applications in clean transportation and low-carbon industries [4][5] - The consumption structure for platinum is shifting, with a decline in jewelry usage from 42% in 2020 to 21% in 2024, while the automotive sector's share has increased from 10% to 28% during the same period [5][6] Industrial Applications - The demand for platinum and palladium is transitioning from being predominantly driven by the automotive sector to a more diversified industrial application, reflecting the broader green transition [6][7] - The growth of plug-in hybrid vehicles is expected to support platinum demand, countering declines in traditional fuel vehicle sales, with platinum consumption in automotive catalytic converters reaching 28% in 2023 [6][7] Future Outlook - As China's dual carbon goals advance, the applications of platinum and palladium in green industries are expected to expand, further solidifying their role as critical resources for high-quality economic development [7]
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Qi Huo Ri Bao Wang·2025-11-20 16:14