China has reported a drop in its platinum imports for the six months to June 2005.

An official from the state-run nonferrous metals information provider, Beijing Antaike, announced that platinum imports to China during the first six months of the year were 18 per cent down compared to the same period in 2004, totalling 13mt.

The official blamed the drop on the fact that platinum prices were mostly quoted at a high level of US$860 to $880 per ounce during the period, thus reducing consumption in the Chinese jewellery sector.

Speaking to Platts, the official confirmed: "The decrease in imports during the period was mainly affected by lower consumption in the jewellery sector in China due to high prices in the first half of this year."

She added that the recent revaluation of the yuan is unlikely to have "any fundamental change" on platinum imports into China, and she suggested that any increase in demand as a result of the change to the yuan is likely to have more to do with "fund speculation".

According to Xinhua, platinum consumption in China exceeded half the world's total output in 2004.