Platinum and palladium futures commenced trading on the Guangzhou Futures Exchange (GFEX) on November 27, following regulatory approval from the China Securities Regulatory Commission. Their first-day combined turnover reached 42.28 billion yuan. Related options contracts will begin trading on November 28.
As core platinum group metals, platinum and palladium are vital "industrial vitamins," playing irreplaceable roles in green sectors such as automotive exhaust purification, hydrogen energy catalysis, and photovoltaic manufacturing.
China is the world's largest consumer of platinum and palladium, accounting for over 20% of global consumption. Approximately 60% of its platinum and nearly 80% of its palladium are used in green industries. However, with less than 0.1% of global reserves, China's supply is heavily import-dependent, exposing domestic enterprises to long-term risks from international price volatility and supply chain insecurity.
The new futures contracts are expected to enhance China's pricing power in the global platinum and palladium markets.
Reporter | Li Xindi
Photo | Publicity Department of Nansha District
Editor | Huang Qini, James Campion, Shen He
