Platinum trading began at the Shanghai Gold Exchange on 13th August. Platinum traded on the exchange is exempt from VAT (17%) and this concession has resulted in fairly steady sales of platinum through the exchange during the last 7 weeks. The volume traded each week has averaged more than 500Kgs but as one might expect the fluctuation in sales levels indicates the price sensitivity of the market.

Demand for platinum is normally buoyant during this period of year as manufacturing activity increases with the approach of one of the three major buying seasons, the weeklong National Day holidays. These begin on 1st October and this year the shops are expected to be especially busy with pent-up consumer demand from the last holiday period at the beginning of May, which was effectively cancelled due to the SARS epidemic.