Platinum facing biggest deficit in years as carmakers snap up metal

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London – High demand from

Automakers, industry and investors will pay global platinum

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The market is in its biggest deficit in years, three industry reports

Monday.

The reports emphasize the emerging change in L.’s fortunes

Platinum and its brother metal palladium, both of which are used mainly in

Vehicle exhaust to neutralize harmful engine emissions.

For years, increased demand and short supply of palladium have been propelled

Higher prices, while consumption is weak and more

Ample availability kept platinum prices down.

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Two reports on Monday predicted that while Palladium will

Remain in deficit this year, platinum will be in short supply

Larger.

Automakers are now moving from palladium to platinum

Save money and produce Platinum Heavy Vehicles

Mounting, exhaust-free electric vehicles are making their way

in the palladium-focused light vehicle market.

Platinum also supports consumption by industry and

jewelers, while demand is based almost entirely on palladium

the cars.

Palladium prices have fallen sharply in recent months, while

Platinum prices are showing signs of recovery.

Specialty materials maker Johnson Matthey said approx

8 million ounces of platinum market a year would be undersupplied by

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128,000 ounces this year, the first deficit since 2020 and

A significant turnaround from last year’s surplus of 740,000 ounces.

The World Investment Board Platinum A

983,000 ounces of platinum deficit – the largest since at least 2014

– After last year’s surplus of 854 thousand ounces.

Consultants Metals Focus predicted 953,000 ounces of platinum

Short supply, up from just 53,000 ounces in 2022.

Forecasts use a slightly different methodology, however

Focus on metals, except for platinum, which has been bought or sold

Exchange traded funds.

JM also expects a rise in the supply of both platinum and

Palladium this year, which Metals Focus and WPIC are not focused on.

For a palladium market of 10 million ounces annually, JM

Expect a deficit of 43,000 ounces this year, down from

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531,000 ounces in 2022.

However, Metals Focus expects the deficit to rise to

707,000 ounces, up from 547,000 ounces last year.

Here are the numbers and comparisons from Johnson Matthey’s

a report.

Platinum (thousands of ounces)

2022 2023% change

supply

Initial supply (mined) 5,530 5,808 5%

Secondary supply (recycled) 1,468 1,521 4%

Total Supply 6,998 7,329 5%

Requests

Automotive 2,762 3,063 11%

Chemicals 699,697 0%

Dentistry and biomedical 253257 2%

Electricity and electronics 235,266 13%

594565-5% glass

investment -565283

Jewelry 1,344 1,351 1%

Petroleum 230213-7%

Pollution control 223,260 17%

4% 483,502 other

Total demand 6,258 7,457 19%

Stock movement 740-128

Palladium (thousands of ounces)

2022 2023% change

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supply

Initial supply (mine) 6,307 6,556 4%

Secondary supply (recycled) 3,099 3,234 4%

Total Supply 9,406 9,790 4%

Requests

Automotive 8,449 8,251 -% 2

Chemical 589534-9%

Dentistry and Biomedicine 186171-8%

Electricity and electronics 544545 0%

investment -109 25

Jewelry 87 88 1%

Pollution control 108123 14%

Other 83 96 16%

Total demand 9,937 9,833 -1%

Movement in stocks -531 -43

Rhodium (thousands of ounces)

2022 2023% change

supply

Initial supply (extracted) 695,724 4%

Secondary supply (recycled) 338,345 2%

Total supply 10,331,069 3%

Requests

cars 953,947 -1%

Chemical 66 82 24%

Electricity and electronics 5 6 20%

Glass -41 5

Other 15 15 0%

Total demand 998 1055 6%

Movement in inventories 3514

Source: Johnson Matthey

(Reporting by Peter Hobson; Editing by Jan Harvey)