“Losses in the Chinese jewellery market are expected to be partially offset by robust growth in India

 

Automotive

Overall, 2014 was another relatively positive year for the global automotive industry, which achieved 3% growth for light-duty vehicle sales and exceeded 86 million vehicle sales against a backdrop of increased sales in North America, Western Europe, China and Japan. The 2015 first half year-to-date sales were similarly encouraging. However, growing concerns about financial volatility in the markets may result in the second half being flatter.

Jewellery

The slowing Chinese GDP growth and a cautious consumer attitude towards luxury goods – especially given the Chinese government’s clampdown on gifting – worked against platinum jewellery sales in China. However, increasing business and consumer confidence in other markets offset these losses. The Indian market continued to post double digit growth in 2014, albeit off a low base. Despite the April sales tax hike in Japan, the platinum jewellery market there continued to show positive signs of growth, with consumers purchasing higher purity pieces. The US market delivered good growth on the back of lower price point pieces and increased marketing efforts by retailers.

It is expected that 2015 will continue to be a challenging year, especially in China where the platinum jewellery market is expected to fall by between 3% and 5%. However, the losses in the Chinese market are expected to be partially offset by the robust growth in India of between 25% and 28%, which is largely driven by the Platinum Guild International Evara programme.

Industrial

The cumulative reduction in the use of platinum in glass and hard disk drives over the last few years has meant decreased demand from these sectors – the glass industry became a net supplier of platinum in 2014. Nevertheless, overall industrial requirements have been strong in 2014 driven largely by chemical, electrical and other applications, for example oxygen sensors.