Europe Asia News

With the approval of the China Securities Regulatory Commission, three futures contracts for platinum and three for palladium began trading on the Guangzhou Futures Exchange. The reference price was set at $57.2 per gram for platinum and $51.55 per gram for palladium.

Platinum and palladium are key raw materials used in green industries such as vehicle emission control, wind energy and hydrogen energy. In China, about 60% of platinum and 80% of palladium are used in such sectors.

As the world’s largest consumer of platinum-group metals, China relies heavily on imports, exposing domestic firms to risks from global price volatility and supply-chain uncertainty.

Deng Weibin, Asia-Pacific Managing Director of the World Platinum Investment Council, said: “This year, after a three-year shortage, platinum prices have risen sharply, causing cost increases and price risks for Chinese companies. This underscores the importance of launching platinum and palladium futures.”

Li Jun, a researcher at Guangzhou Financial Holdings Futures, noted that annual price volatility for platinum and palladium has exceeded 20% over the past five years, meaning companies will be eager to use derivatives to manage risk.

Li added that in the future, major suppliers such as South Africa and Russia may be able to access the Chinese market directly with yuan-denominated delivery contracts.