Trial trading of platinum carried out at the Shanghai Gold Exchange on Wednesday was a success, withthe closing price of platinum slightly higher than the international market.
Platinum is the third commodity traded at the Shanghai Gold Exchange.
According to Gu Wenshuo, General Manager for general affairs department of the exchange, the platinum traded had a purity of 99.95 percent at a starting price of 189.9 yuan (about US$22.88) per gram.
Twenty-seven members of the exchange participated in the transactions during which 170 kg of platinum was sold. Total transactions were worth 32.82 million yuan (about US$3.95 million).
Platinum consumption in China has exceeded US$2 billion a year, the highest amount in the world for a succession of three years. However, China is deficient in platinum resources and its annual output of the precious metal is set at around one ton, so it must rely on imports for over 90 percent of its platinum.
Formal trading of platinum at the exchange is expected to start next month, said Gu, who believed spot transactions of platinum atthe exchange would curb the existing smuggling of platinum in the country.
(Xinhua News Agency August 1, 2003)
