Platinum Price Surage Hits Silicone Chemical Costs Hard

Recently, concerns over U.S. economic policies have boosted the safe-haven demand for gold and silver. Meanwhile, supported by strong fundamentals, the unit price of platinum has surged to $1,683, hitting a 12-year high, and this trend has exerted a strong impact on industries such as silicone.

latinum’s sharp price rise stems from multiple factors. First, the macroeconomic environment, including global volatility and major economies’ policy shifts, affects precious metal markets. Second, supply remains tight: mining output is constrained by challenges in key producing regions, logistics issues, and strict environmental rules. Third, demand is robust—China, a top consumer, sees annual platinum demand exceed 5.5 tons, driven by its automotive, electronics, and chemical sectors. Fourth, investment willingness grows, with investors increasing positions via ETFs and futures. Looking ahead, platinum inventories will keep depleting, and prices are expected to rise further.

Platinum has a very wide range of applications, covering not only core fields such as jewelry, automotive and electronics, but also its role in the chemical industry cannot be ignored. Especially in the silicone field, platinum catalysts—high-efficiency catalytic materials with metallic platinum (Pt) as the active component—have become the core support for key production links in silicone and many other industries, thanks to their excellent catalytic activity, selectivity and stability. With the cancellation of the preferential policy on value-added tax (VAT) for imported platinum, the platinum procurement costs of relevant enterprises will rise directly. This may not only put cost pressure on the production links of chemical products such as silicone, but also indirectly affect the pricing of their end markets.

To sum up, platinum is vital for the chemical industry. Its stable price and steady supply benefit China: it maintains stability in domestic chemicals and manufacturing, supports downstream operations, and avoids cost shocks. It also boosts Chinese enterprises’ global competitiveness, helping them meet demand and expand internationally.