Platinum body says auto sector slowdown may not hit demand

The global demand for platinum, the costliest precious metal, is unlikely to fall despite a slowdown in the auto industry in major countries, a senior official from a global industry body said.

More than 50 per cent of platinum is consumed as auto catalysts, and any change in industry fortune affects the platinum consumption.

“I don’t think there will be a major impact in platinum demand from slowdown in the global economy and the auto sector,” James Courage, chief executive, Platinum Guild International UK said on Thursday.

Platinum Guild International is a non-profit organisation funded by leading South African platinum producers and refiners, and provides jewellery buyers with information, practical advice and expertise.

“I think you have to separate the fact that platinum is used more in diesel engine catalyst than in petroleum catalyst,” Courage said on the sidelines of the 25th India International Jewellery Show that was inaugurated on Thursday.

He said there was clearly a slowdown in the global economy. But, Courage also said, “Diesel engine has been the area of growth in auto sector as it provides much better mileage.” Due to this, there may not be major impact on platinum demand in the world, he said.

However, consumption of the commodity is definitely declining in China, he said.