Global demand for platinum jewellery during the second quarter of 2017 (Q2) was 620 koz, flat year-on-year and 3% lower quarter-on-quarter, the World Platinum Investment Council (WPIC) said while releasing the latest issue of its publication, Platinum Quarterly, yesterday. The macro picture however obscured some important regional trends, with platinum jewellery demand in India and the US being on the upswing, while in China retail sales declined.

Based on figures reported by the Platinum Guild International (PGI), the WPIC said that Chinese platinum jewellery demand dropped by 6.6% in Q2’17, while Indian platinum jewellery retail sales accelerated by 48% year-on-year in the same period.

WPIC said that in China, some retailers maintained or increased the number of pieces sold, but as they were selling more lighter-weight pieces with good craftsmanship and higher margins, it resulted in fewer ounces being sold than the value of retail sales might suggest.

In India, the report said, PGI’s marketing efforts are helping drive the rapid growth in platinum jewellery demand (48% increase year-on-year), although this very high growth rate is flattered by a comparison to a difficult Q2’16 when the jewellers’ strike reduced demand. Demand in June was also boosted by a rush to buy jewellery to take advantage of the lower prices just before the introduction of the new Goods and Services Tax (GST) from 1 July. As a result some Q3 demand has been pulled into Q2’17, WPIC said. The full effects of the GST are yet to be seen; the tax is 1-2% higher than previously, but having a standardized nationwide tax could improve supply chain efficiencies for larger retailers, it added.

Looking forward, WPIC expects Global platinum jewellery consumption to fall by an estimated 1% to 2,590 koz in 2017, largely on account of an expected decrease in China, which is the largest platinum jewellery market, outweighing gains in all other regions.

On the supply side, total jewellery recycling is projected to be 515 koz this year as the level of recycling in H1’17 was slightly higher than expected. Though this will represent an overall decline of about 110 koz, it marks a return to more normal levels, WPIC said, as last year’s figure was higher on account of excess retail stock being returned to manufacturers in China.