LONDON, Nov 21 (Reuters) – Platinum will register a smaller
supply deficit in 2024 after a record one in 2023 due to lower
consumption and higher output, the World Platinum Investment Council
(WPIC), whose members are major Western platinum producers, said on
Demand for platinum, which is used in catalytic converters to
reduce harmful emissions from vehicle exhaust systems among other
applications, is expected to decline by 6% to 7.7 million troy ounces
in 2024 due to reduced consumption by glassmaking and chemical sectors,
the WPIC said in a quarterly report.
Yet, demand from the auto sector is expected to increase for the
fourth consecutive year in 2024. Stricter emissions regulation, higher
jewellery consumption and widening substitution by automakers of
palladium for cheaper platinum will further support
Supply, meanwhile, is expected to rise by 3% to 7.3 million ounces
due to higher output in South Africa, though downside risks for both
mined and recycling supply persist after this year’s decrease in the
platinum group metals’ price.
That will leave the market under supplied by 353,000 ounces in 2024
compared with the record deficit of 1.07 million ounces this year, the
WPIC said, adding that the platinum market is now facing consecutive
The WPIC expects availability of above-ground stocks to continue to
decline with most of the stocks held in China and not readily able to
be exported. At the end of 2023, the above-ground stocks will be at a
three-year low, equal to five months of demand.
“The economic aftershocks of the past three years are still being
felt in the platinum market and continue to affect market behaviour and
prices today,” Trevor Raymond, the WPIC chief executive, said in the
report. Platinum prices are down 15% so far this year.
As previously accumulated inventories in the automotive sector
decline “with continued growth in vehicle production and sales, we
foresee a return to more typical automaker platinum buying patterns,
which could further tighten the market and place upward pressure on the
platinum price,” Raymond added.
PLATINUM SUPPLY/DEMAND (‘000 oz)* 2022 2023 2024 2023/2022 2024/2023 estimate forecast change change
Refined Production: 5,522 5,551 5,743 1% 3%