INTERVIEW-China platinum jewellery demand robust-JM

* High disposable incomes up China platinum jewellery demand

* Platinum jewellery attracts younger generation

* Platinum, a bigger bridal jewellery market than gold

TOKYO, Nov 17 - Lower prices, economic growth and platinum's growing popularity have all contributed to a more than doubling of demand for the metal this year by jewellery makers in China, Johnson Matthey said on Tuesday.

Chinese demand for platinum for use in jewellery is forecast to rise by 900,000 ounces to an all-time peak of 1.75 million ounces, the precious metals refiner said in its 2009 interim review.

That is in sharp contrast with platinum jewellery markets in Europe and North America, where demand has slipped due to the economic downturn.

"The Chinese economy, although it has not grown as much as might have been expected, has still grown ... and it has not suffered as much as perhaps some of the other countries in the world," said Rainaldo O'Meara, Johnson Matthey's market research manager.

He told Reuters in an interview there was a considerable disposable income in China that allowed consumers to buy platinum.

"Platinum or white metal jewellery has become extremely popular, particularly amongst a certain generation, usually the age group 20 to 35 ... maybe 40," he said.

That was in contrast with the older generation, which continued to favour gold.

Higher demand for platinum jewellery is part of the growing popularity of white metal jewellery in China.

As has been the case in Japan, platinum is also attracting couples seeking wedding jewellery.

O'Meara said it was not just plain items but gem-set jewellery that was being bought in China, an indication that platinum was being used in bridal jewellery.

Although gold, including white gold, was a bigger market, platinum has a large share of the bridal jewellery market.

"If you are looking at, for example, the bridal market platinum has got a large share of that," he said.

Chinese consumers were also drawn to platinum, which like gold is valued as an investment.

"The price of platinum going up is also not necessarily a bad thing as far as the person who bought it, because they see the value of the product that they bought going up," O'Meara said.

"A sharp price increase certainly has an effect on manufacturers because they tend to buy on a dip, and if the demand is out there, they will just wait for the right opportunity to purchase their metal," he said.

JAPAN DEMAND HIGHER

Platinum jewellery remains popular in Japan, although the economy has made the precious metal less affordable.

"We are certainly looking this year at a higher Japanese demand than last year, but part of that is largely to do with the fact that there has been less recycling of jewellery," O'Meara said.

In terms of industrial use, China consumes more palladium than platinum for autocatalysts to clean car exhaust fumes, and that is expected to remain the case.

"Passenger vehicles in China are almost one-hundred percent gasoline, and the gasoline vehicles have a tendency to use palladium-rhodium catalysts," he said.

Japan's demand for platinum for use as autocatalysts will depend in part to the strength of the global economic recovery because of the auto industry's dependence on exports.