ANNUAL REPORT 2001 - Anglo Platinum

Platinum Market Review (continued)PLATINUM JEWELLERYJEWELLERYother items of platinumCHINAThe platinum jewellerymarket has diversified inrecent years, bothgeographically and interms of product.Higher platinum prices, exacerbated bythe differential between the platinum andthe gold price, together with weak economicconditions negatively impacted demandfor platinum jewellery fabrication in Japanand the USA. Further growth in demandfrom China was insufficient to counteractweakness in other markets and overall salesof platinum to jewellery fabricators isestimated to have declined 11% in 2001to 2,52 million ounces.The platinum jewellery market has diversifiedin recent years, both geographically and interms of product. Once dominated by Japan,the market has now grown in other regionsand China has overtaken Japan as the world’sleading platinum jewellery market. Duringthe 1990s, platinum was firmly established inthe Japanese bridal market, and now close to100% of all engagement rings are made inplatinum. In the 1980s and 1990s, the PGIjewellery. This includedplatinum at the lower endof the precious metaljewellery market. By the late1990s, the economicsituation had deteriorated;this was exacerbated by agrowing platinum/gold pricedifferential and platinum lostmarket share at the lower end ofthe market.Growth of platinum jewellery marketsoutside Japan(’000 oz)2 0001 7501 5001 2501 000750500During 2001, China’s voraciousappetite for platinum continuedunabated. Demand for platinumfrom jewellery fabricators isestimated to have exceeded1,3 million ounces in 2001,an increase of 18% over theprevious year. Demand wouldalmost certainly have beenhigher but for the increasein the platinum priceduring the first halfof 2001 andsomedisruption toproduction caused bygovernment fiscal audits.embarked on successful marketing strategies250Lower prices in the second half led to anto extend platinum jewellery demand toawider target group with the promotion of095 96 97 98 99 00 01China Europe North America Rest of worldincrease in the rate of offtake, which hascontinued into 2002.20