Core Viewpoint - The introduction of platinum and palladium futures and options by the Guangzhou Futures Exchange is expected to create a new pricing benchmark for these strategic metals, enhancing China's influence in the global market and providing better risk management tools for domestic industries [2][6][7]. Summary by Sections Introduction of Futures and Options - The Guangzhou Futures Exchange announced that platinum and palladium futures will start trading on November 27, 2025, and options will begin on November 28, 2025 [2][3]. - The first futures contracts for platinum are PT2606, PT2608, and PT2610, while for palladium, they are PD2606, PD2608, and PD2610 [3]. Trading Specifications - The trading unit for both platinum and palladium futures is 1,000 grams per contract, with a minimum price fluctuation of 0.05 yuan per gram [4]. - The initial margin requirement for trading on the first day is set at 9% of the contract value, with a price limit of 14% from the base price [4]. - Trading hours are Monday to Friday from 9:00 to 10:15, 10:30 to 11:30, and 13:30 to 15:00 [4]. Options Trading Details - The options contracts will initially allow only limit orders and limit stop-loss (profit) orders, with a maximum order size of 100 contracts [5]. - The trading fee for options is 2 yuan per contract, with no fees for intra-day closing trades [5]. Market Context and Supply Risks - Platinum and palladium are critical for green industries, with approximately 60% of platinum and nearly 80% of palladium used in automotive catalytic converters in China [6]. - The supply of these metals is highly concentrated, with 71% of global platinum supply from South Africa and 40% of palladium from Russia [6]. - China's dependence on imports for platinum and palladium is significant, with 80% and 55% respectively, leading to high import risks [6]. Strategic Importance and Pricing Power - The new futures and options will be priced in RMB, creating a "third pricing curve" in Asia, which is expected to reflect local supply and demand more accurately [7]. - This move is anticipated to enhance China's pricing power in the global market for these metals, contributing to a more integrated financial system for commodity trading [7].

Core Viewpoint - The approval of platinum and palladium futures and options by the Guangzhou Futures Exchange marks a significant shift in China's control over pricing in the global market for these critical metals, which are essential for the green energy transition [1][3]. Group 1: Market Dynamics - China consumes over 20% of the world's platinum and palladium but has historically lacked pricing power, being subject to annual price fluctuations exceeding 20% [1][3]. - The volatility in prices is exacerbated by geopolitical tensions and shipping cost fluctuations, with platinum prices showing annual volatility over 20% and palladium's daily volatility reaching 1.58% [3]. - The introduction of futures contracts is expected to stabilize costs for domestic companies, allowing them to hedge against price fluctuations [3]. Group 2: Strategic Implications - The launch of futures is not just a financial innovation but also a strategic move aligned with national policies aimed at resource integration and balanced profit distribution across the supply chain [6]. - The 2025 policy document emphasizes controlling low-level capacity expansion and shifting from resource output to technology standard output, indicating a strategic pivot in the industry [6]. Group 3: Investment Opportunities - The approval of platinum and palladium futures has already led to significant gains in related sectors, with a notable 82% increase in the performance of ETFs tracking the new energy metals sector [8]. - Companies like Zijin Mining and others with core resource advantages have seen their stock prices double, reflecting strong market demand against a backdrop of supply constraints [8]. - The demand for aluminum in new energy vehicles is projected to increase by 30%, while the photovoltaic industry is expected to consume 4 million tons of aluminum by 2030, creating further investment opportunities [8]. Group 4: Industry Challenges - Despite the positive outlook, there are emerging risks, including potential price corrections due to shifts in global commodity cycles and demand fluctuations in downstream sectors like photovoltaics and electric vehicles [10]. - The industry is experiencing significant differentiation, with some sectors like electrolytic nickel seeing production increases while others like industrial silicon and refined cobalt face challenges due to capacity reductions and policy disruptions [11]. - The performance of companies within the sector is increasingly varied, with some firms reporting substantial profit increases while others struggle with cost pressures, suggesting that diversified investment strategies may be more prudent [11].