The U.S. Climbed Past Switzerland in Platinum Exports to Italy

Basic Precious Metals August 02, 2015
Author: Olga Minchina
Account Manager

Platinum (in semi-manufactured forms) held the largest share of Italy's total imports, amounting to 65% in 2014.

In 2014, the U.S. (34.4%), Switzerland (25.3%), the United Kingdom (16.8%) and Germany (11.3%) were the main suppliers of platinum into Italy, together making up 88% of their total imports. Between 2007 and 2014, Austria had the highest growth rates in Italy's imports structure, with a CAGR of +62.0%.

In 2014, Turkey (38.7%), distantly, the U.S. (17.5%) and Thailand (6.3%) were the main destinations of Italy's exports, together comprising 63% of its total exports. From 2007 to 2014, average annual growth rates of exports into these countries were 229.9%, 36.6% and 71.2%, respectively.

In Italy, platinum is extensively used in such lucrative sectors as automotive industry, electronics and jewellery production. Automotive industry is one of the strongest drivers of the Italian economy, providing approximately 5% of Italy's GDP. Jewellery industry remains the main driver for platinum production in Italy.

Euro 6 emissions legislation, implemented in January 2004 to reduce exhaust of truck diesel engines, boosted demand for platinum more than 50%. Nonetheless, platinum consumption growth in this sector was hindered by anticipatory heavy duty vehicle purchasing prior to the introduction of new standards. Euro 5 trucks, whose exhaust systems contain either minor inclusions of metals of platinum group, or do not contain them at all, cost less.

At the same time, extension of Euro 6 standards to passenger cars from September 2014 not only is expected to foment platinum usage growth, but it should also restrain or even suspend growth of palladium use in diesel car catalysts in Europe.

Source: Italy: Platinum - Market Report. Analysis And Forecast To 2020