A nearly double-digit drop in demand for platinum jewellery in the Chinese luxury market is expected this year, according to analysts.

This is despite lower global prices, which would leave world demand for the metal exposed to sharper decline, according to the Thomson Reuters GFMS team on the eve of London Platinum Week.

China is by far the world’s biggest market for platinum jewellery, taking more than 60 per cent of last year’s output – a 7 per cent drop over the previous year. Global demand for platinum jewellery fell 4 per cent.

“Discretionary purchasing power is being spent on other things – white goods, and certainly tourism,” says Precious Metals Insights (Hong Kong) director Philip Klapwijk.

Carmakers using platinum in catalytic converters are the biggest overall buyers of platinum, accounting for 40 per cent of global demand. But on a regional basis, Chinese jewellers are the biggest single buyers of platinum.

Also affecting the luxury sector is a crackdown on corruption, launched by Beijing in 2012, which has made officials reluctant to be seen buying expensive jewelry.

Retailers have also been more focused on gold since a sharp price drop in early 2013 drove sales to record highs.