How China Drives Global Platinum Demand & Prices
China has emerged as the dominant force in the global platinum market, reshaping supply chains, consumption patterns, and investment strategies. As the world’s largest consumer of platinum, accounting for nearly 30% of global demand in 2024, China’s influence is pivotal in determining platinum price trajectories in 2025 and beyond.
Strategic Status: Platinum’s Role in China’s Decarbonisation Plan
Platinum’s designation as a “strategic metal” under the Chinese State Council’s New Energy Vehicle (NEV) Industrial Development Plan highlights its central role in the country’s clean energy transition. The metal is critical to proton exchange membrane (PEM) technology, used both in electrolysers that generate green hydrogen and in fuel cells that convert hydrogen back into electricity.
This positioning has fueled aggressive long-term acquisition by Chinese industries, which have imported more platinum than short-term consumption requires since 2019. Effectively, China has begun building a strategic reserve of platinum, positioning itself ahead of the curve in the global energy transition.
China's Multi-Sector Demand for Platinum in 2024
Sector | % of China’s Platinum Demand |
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Investment | 32% |
Industrial | 31% |
Jewellery | 20% |
Automotive | 17% |
This diversified demand base reinforces China’s market influence. In particular:
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Investment demand soared, with China accounting for 64% of global bar and coin demand.
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Industrial use grew due to hydrogen fuel cell production, refined chemicals, and glassmaking.
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Jewellery demand rebounded strongly (+15% forecast in 2025), aided by platinum’s heavy discount to gold.
The Rise of Platinum Investment in China
Prior to 2019, China played a minor role in platinum investment. Today, it’s the global leader.
The key driver? Large-size platinum investment bars (500 g and 1 kg), such as those issued by China Gold Coin Group, backed by the Chinese central bank. These products appeal to high-net-worth individuals and are gaining traction due to lower fabrication costs and platinum’s perceived value as a store of wealth.
This surge in investment has created a quasi-reserve of platinum within China’s domestic market, further tightening the global supply picture and pressuring prices upward.
Hydrogen Economy and Fuel Cell Mobility
China’s goal of deploying 1 million hydrogen-powered vehicles and 1,000 refuelling stations by 2030 underscores the long-term growth in platinum consumption.
The country already leads globally with over 28,000 hydrogen vehicles and 400+ refuelling stations as of 2024. With each hydrogen fuel cell vehicle requiring 30–50 grams of platinum, future demand is set to climb steeply.
By the late 2030s, China’s hydrogen-linked platinum demand is projected to approach 1 million ounces annually, according to the World Platinum Investment Council (WPIC).
Industrial and Strategic Implications
In addition to hydrogen technology, platinum is vital in:
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Petroleum refining
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Glass manufacturing
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Chemical catalysts
China’s dominance in these industrial sectors means that any supply disruption or demand surge directly impacts global prices.
Notably, the lack of a domestic exchange-traded spot or futures market for PGMs in China is being addressed. The Guangzhou Futures Exchange (GFEX) is expected to introduce platinum and palladium futures soon—potentially including delivery in both ingot and sponge form. This could enhance price discovery and offer hedging options for domestic users.
Price Outlook: China’s Market Signals Matter
China’s platinum demand patterns have already influenced pricing trends in 2025. With increased industrial applications, elevated investment demand, and a strategic government-backed accumulation policy, the country is tightening global supply and elevating the floor price for platinum.
Analysts believe platinum could revisit $1,200–$1,300 per ounce in the short term, with upside potential if Chinese hydrogen infrastructure expands as forecast.
Global Impact and Outlook
As China continues to secure platinum for both economic and strategic reasons, the rest of the world will be forced to adapt:
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Supply bottlenecks may emerge, particularly for nations dependent on PGMs from South Africa and Russia.
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Price volatility could increase as demand outpaces mining output, especially without robust recycling infrastructure.
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Investment interest globally may follow China’s lead, as platinum becomes more tightly linked to the clean energy future.
Conclusion
China’s platinum market is no longer just a consumer base—it’s a price-setter, strategic accumulator, and innovation driver in hydrogen and clean energy sectors. For global investors, understanding Chinese demand dynamics is now essential for interpreting platinum’s value and future direction.