According to the Moscow Times, Russia's platinum producers are anticipating a recovery as prices for the metal have started to approach pre-October levels due to new demand from investors and the Chinese jewelry market.

In a report, metals and chemicals company Johnson Matthey stated that in the aftermath of the volatility of 2008, when prices plummeted to a low of $771 per ounce in October from a high of $2,250 in May, it now looks as though platinum will enjoy a six-month period of stable prices.

According to Johnson Matthey, platinum prices may rise as high as $1,350 an ounce in the next half year and will certainly remain above $950 an ounce. Last Friday, Platinum traded at $1,153 an ounce.

Following the decline of US and European car manufacturers – both large consumers of platinum – the metal suffered major setbacks last year.

Increased demand from bullish investors and jewelers may help to offset some of the decline, but a full recovery is expected only when carmakers experience a turnaround.

In 2008, 47% of platinum demand came from the auto sector, a 49% decline in comparison to 2007.

The rally that Norilsk Nickel and platinum producers are experiencing is likely to continue to depend on Chinese jewelry demand in the near future.