PALLADIUM JEWELLERY DEMAND FELL IN 2007 AS RECYCLING OF OLD STOCK CONTINUED IN CHINA
Palladium jewellery demand fell from 995,000 oz in 2006 to 740,000 oz in 2007. Jewellery manufacturing demand in China fell to 500,000 oz. The industry in China remains fully stocked and recycling of large amounts of old, unsold retail stock drove palladium demand lower last year. There are now some signs that this market has stabilised. In Europe and North America, palladium jewellery demand rose from initially modest levels as more jewellers started to work with this metal. China
Chinese jewellery demand fell by a third to 500,000 oz in 2007. Large amounts of the original, unsold, Pd950 stock continued to be returned by retailers for recycling, meaning that manufacturing volumes were higher than this headline figure. Much of this stock has now been reprocessed and most current stock is made from the newer Pd990 alloy. Retail sales remain mixed with little palladium on sale in the key urban markets of Beijing and Shanghai. Palladium is not universally known by consumers across the country but it is popular in cities in the far North-East of China and in the West. Other Countries
In Japan, where palladium is used as an alloying agent in white gold and platinum alloys, jewellery demand for palladium dropped in line with falling demand for platinum jewellery, from 130,000 oz in 2006 to 120,000 oz in 2007. North American and European jewellery manufacturers showed increased interest in palladium as a jewellery metal in 2007, driving demand higher in both regions to a combined 95,000 oz, 19 per cent up on the previous year. Palladium’s lower intrinsic cost relative to platinum and gold allowed jewellery at more appealing price points to be made. Palladium made inroads into the men’s wedding band sector in North America in response to pressure on wedding budgets from rising diamond and metal prices. Palladium Jewellery Outlook
The increased price differentials between palladium, and platinum and gold, should lead to increased manufacturing demand in North America and Europe during 2008. In China, much of the old unsold stock of Pd950 has now been recycled and a rise in demand for freshly mined metal is possible. Source http://www.platinum.matthey.com/media_room/Press_Releases.html |
