In 2006, demand for platinum is forecast to increase by 5 per cent from 6.69 million oz in 2005 to a record level of 7.02 million oz.

Purchases of platinum for use in autocatalysts is expected to climb by 15 per cent to a new high of 4.38 million oz in 2006. European auto catalyst demand for platinum again grew strongly and reached a new high of 2.25 million oz. This rising demand was powered by higher diesel car sales and tightening diesel emissions limits linked to the introduction of Euro IV standards. In North American, the auto industry purchased 16 per cent more platinum in 2006 than the year before. For China and the rest of the world (excluding North America, Europe and Japan) the demand of platinum for the use in auto catalysts grew by 37 per cent to 615,000 oz.

Purchases of platinum for jewellery manufacture is projected to drop by 11.5 per cent, falling from 1.965 million oz to 1.74 million oz. A 11 per cent reduction in demand for metal from Chinese jewellery manufacturers accounted for much of the decline, and was attributable to the continued recycling of old jewellery and stock as well as to palladium offering a lower retail cost alternative with cheaper financing.

Industrial demand for platinum is expected to rise by 6 per cent to 1.76 million oz in 2006. Growth in the chemical, electronics and petroleum sectors will outweigh small declines elsewhere.