Core Insights - The platinum market has entered a continuous shortage cycle for three consecutive years, driven by supply-demand dynamics and policy adjustments, leading to significant price increases this year [1][3] - The global platinum supply is heavily reliant on South Africa, with a long mine expansion cycle of three years, making it difficult for supply to respond quickly to strong market demand, indicating a structural deficit in the industry for the coming years [3] - China has emerged as a key engine for global platinum demand growth, with a notable structural differentiation in demand, particularly in jewelry, industrial, and investment sectors, despite a decline in automotive demand [3][4] Supply Dynamics - The global platinum supply is characterized by a structural deficit due to the long lead time for mine expansions and the concentrated supply from South Africa [3] - The supply side is unable to quickly meet the increasing demand, exacerbating the supply tightness in the market [3] Demand Dynamics - Jewelry demand in China has shown remarkable growth, with platinum jewelry processing volume in Q2 of this year more than doubling year-on-year, and the demand scale for the first half of 2025 approaching the total demand for 2023 and 2024 [4] - Investment demand for platinum in China is also high, with a cumulative growth of 19% in physical investment demand from 2022 to 2024, and a significant shift towards smaller investment products, indicating a broader participation of ordinary investors in the platinum market [4] - The purchasing behavior in China has shifted from speculative to genuine demand support, as evidenced by increased purchasing even when platinum prices are relatively high [4]

Core Viewpoint - The global platinum market is entering a prolonged shortage cycle, driven by supply constraints and strong demand, particularly from China, which is expected to continue for the next five years [1][2]. Supply Side - Global platinum supply is heavily reliant on South Africa, with a mining expansion cycle lasting three years, making it difficult to quickly respond to strong market demand [1]. - The industry is facing a structural deficit that is likely to persist in the coming years, exacerbating supply tensions [1]. Demand Side - China has emerged as a key driver of global platinum demand growth, with significant increases in jewelry, industrial, and investment sectors [1]. - Jewelry demand in China saw a remarkable increase, with platinum jewelry processing volume more than doubling in Q2 2023, and the demand scale for the first half of 2025 approaching the total for 2023 and 2024 [2]. - Investment demand is also robust, with a cumulative growth of 19% in physical platinum investment demand from 2022 to 2024, and a notable shift towards small-scale investment products, which saw a demand increase of over six times year-on-year in Q2 2025 [2]. Market Dynamics - The purchasing behavior in China has shifted from being negatively correlated with prices to being driven by genuine demand, even as platinum prices remain relatively high [2]. - The long-term outlook for platinum investment is positive, with expectations of continued shortages until 2029, and an optimistic view on platinum becoming a growth highlight in the precious metals market [2].