The precious metal is boosted by its use in catalysts that reduce gas emissions from diesel vehicles as China plans to green its engines.
The price of platinum, a precious metal also used by industry, jumped Wednesday to its highest level since January 2015, boosted by its use in catalysts reducing gas emissions from diesel vehicles as China plans to limit CO2 emissions of its transport.
At around 3:35 p.m. GMT (4:35 p.m. CET), platinum soared to $ 1,252.84 an ounce, its highest in nearly six years. At 1,232.37 dollars around 3:35 p.m. GMT, platinum gained 9% over the last three sessions.
The world’s number one platinum refiner, British engineering group Johnson Matthey, estimates demand for the metal will rise: In China, new regulations under consideration on CO2 emissions could force entire fleets of diesel trucks to s ” equip with catalysts.
According to the group’s biannual report on the market, after 2020 when both demand and supply were weighed down by the COVID-19 pandemic, mines and automobile factories idling, purchases will pick up faster than production.
Palladium (+ 2.14% to $ 2,379.93 an ounce) is also used to create catalysts, but more for gasoline vehicles.
“Platinum has had strong bullish fevers recently, which can be explained by the fact that the metal is undervalued compared to palladium and gold,” commented Carsten Fritsch, analyst at Commerzbank.
“The rise in prices currently involves financial purchases, which bet on an increase in demand for automotive catalysts but also for its use in the production of green electricity from hydrogen”, adds Ole Hansen, analyst at Saxo Bank .