India's platinum demand rose 25% in 2014

NEW DELHI (Scrap Monster): India is emerging as one of the key platinum markets of the world. According to World Platinum Investment Council (WPIC), the country accounted for 38% of the global platinum demand in 2014. The platinum jewellery and industrial use demand increased significantly during the year. The rising demand trend is expected to continue in 2015, WPIC stated.

As per statistics, the demand for platinum jewellery in the country rose from 140 koz by nearly 25% to 175 koz during 2014. The jewellery demand for platinum is expected to rise 15% to touch 200 koz in 2015. Platinum jewellery is expected to make more inroads into the Indian market.

In addition, the automotive sector demand for platinum totaled 160 koz in 2014, remaining almost flat when compared with the previous year. The growing focus on emission standards offer great upside potential for platinum to be used as a catalyst in diesel cars. The automotive sector demand for platinum is expected to regain momentum in 2015 in line with the country’s growing economy.

The country’s platinum demand normally ranges from 12 to 15 tonnes. The official imports account for only 25% of the total demand, the rest being met by recycling. The automotive sector generally makes use of recycled platinum.

WPIC noted that international platinum prices currently trade below gold. Platinum is priced at $1,126 per Oz, whereas gold is priced at $1,162 per Oz. The Council expects platinum prices to edge higher to levels of $1,300 to $1,350 per Oz during 2015. It expects mine production to recover during the year. WPIC forecasts the total platinum supply during 2015 to rise 10% to 7,965 koz. Also, demand too is expected to grow by 3% to 8,200 koz, thereby resulting in 235 koz net deficit of the commodity.