The deficit in the global platinum market will most likely top 1 million ounces this year due to strong demand growth from carmakers and other industries amid flat supply, the World Platinum Investment Council (WPIC) said in its latest quarterly report.
“Total supply is expected to remain flat, aligned with the weak 2022 level of 7,224 koz (-31 koz), while demand is expected to increase significantly by 27% to 8,230 koz (+1,738 koz),” the report says.
In 2021 and 2022, the platinum market saw a surplus of 1,295 million and 764,000 ounces, respectively.
Global platinum demand surged by 31% year-on-year in the second quarter 2023 on strong industrial and investment, while refined platinum production, recycling and jewelry recycling fell 4%, 13%, and -9%, respectively, sending the market in a 348,000-ounce deficit.
The efforts of Russian producer Nornickel to mitigate the procurement and logistical obstacles driven by geopolitics are helping to avoid more serious disruptions for 2023, the WPIC noted.
Despite the expected significant fall in Nornickel’s platinum production in the second half of 2023, the robust first half performance suggests that its full-year PGM output may be higher than expected, the WPIC noted.