SHANGHAI Gold Exchange (SGE), China’s only de facto raw gold transaction market, is expected to begin platinum trading this year.
The Ministry of Foreign Trade and Economic Co-operation (Moftec) had permitted Shanghai Gold Exchange to open spot transactions of precious platinum, but “we are still waiting for a final approval from the State Council,” said Yin Bo, a senior publicity official with Shanghai Gold Exchange.
He said some of the detailed policies, especially those on taxes, are yet to be finalised.
Most of the country’s platinum is imported and Moftec, the country’s top foreign trade authority, is still negotiating with relevant government bodies to decide whether or not to impose taxes on platinum imports via the exchange.
“We still need months of preparation before formally opening the transactions,” said Yin.
So far, SGE is conducting trade on gold with purity at 99.99% and 99.95%.
Experts and insiders say the move is aimed at setting the platinum price on the domestic market in line with that on the international market and to meet the nation’s huge demand for platinum.
Official statistics show that currently, the international price for platinum is US$683 (RM2600) per ounce US$21.93 (RM83) per gram while, the domestic price stands at US$23.25 (RM88) per gram.
Lu Wenyuan, secretary-general with the China Gold Association, said the price gap increased the operating costs of Chinese platinum processors and left a margin for the speculators.
According to statistics from the China Gold Association, China’s platinum consumption has ranked No 1 around the world for three consecutive years.
China imported 40 tons of raw platinum last year, which accounts for 55% of the world’s output as a whole.
The annual platinum output in China was only 1 ton. – China Daily