CHINA remains the world's biggest market for platinum this year even as the global market for the precious metal has moved from surplus to deficit on fallen supplies and firm demand, an industry report said.

Demand remains steady, mainly driven by rising jewelry consumption in China, Johnson Matthey, a United Kingdom chemicals specialist, said yesterday in the interim outlook for the metal.

China's gross platinum jewelry demand will rise 14 percent yearly to 59.7 tons this year, excluding recycling effects, accounting for 70 percent of the global market.

"In the first eight months, new purchases of platinum by the Chinese jewelry industry reached a three-year high as the trade took advantage of yuan prices that were on average 16 percent lower than the equivalent period in 2011. But the strong purchasing is expected to give way to a slightly slower final quarter as a result of higher metal prices," said Johnson Matthey.