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Global Platinum Demand Surges in Q1’24, Supply Shortages Persist
The World Platinum Investment Council (WPIC®) has released its much-anticipated Platinum Quarterly report for the first quarter of 2024, unveiling significant shifts in both demand and supply dynamics within the platinum market. Here are the key highlights from the report:
Demand Surge:
In Q1’24, global platinum demand witnessed a substantial rise to 1,994 koz, driven primarily by a surge in jewellery demand and steady growth in the automotive sector. This marked a notable increase from the previous quarter.
Supply Challenges:
Conversely, total platinum supply experienced a decline, reaching its second lowest level in the time series at 1,625 koz. The mining and recycling sectors continued to face challenges, contributing to a market deficit of 369 koz for the quarter. For the full year, total supply is projected to remain flat compared to 2023, standing at 7,111 koz.
Recycling Projections:
While recycling supply remained historically low in Q1’24, WPIC® forecasts a 5% increase for the full year 2024, driven by a recovery in spent autocatalyst supplies and a modest uptick in jewellery demand in China.
Mined Supply Forecasts:
Despite a 4% year-on-year rise in refined mine production in Q1’24, total mined platinum supply is expected to decrease by 2% for the full year 2024. South African and Russian outputs are set to decline due to various factors including infrastructure closures and planned maintenance.
Automotive Sector Highlights:
Platinum demand in the automotive sector soared to a seven-year high in Q1’24, reaching 832 koz. This growth is attributed to rising vehicle production, increased use of platinum-rich catalysts, and a greater hybrid vehicle share. The automotive demand for platinum in 2024 is projected to continue growing by 2%.
Jewellery and Industrial Demand:
Global platinum jewellery demand rose by 5% in Q1’24, with notable increases in Indian fabrication. Additionally, industrial demand, despite expected declines in certain sectors, remains robust and is forecasted to be 17% above pre-COVID averages.
Investment Outlook:
The investment landscape for platinum remains positive, with net platinum investment expected to remain in the green for the second consecutive year. While challenges persist, particularly in supply chain disruptions and market uncertainties, platinum’s role in the hydrogen economy presents new opportunities for growth and investment.
Expert Insights:
Trevor Raymond, CEO of the World Platinum Investment Council, emphasized the sustained demand for platinum amidst global economic challenges. He highlighted the potential for deeper deficits in the platinum market and underscored the significance of platinum’s role in automotive demand and the hydrogen economy.
Disclaimer:
WPIC® and Metals Focus, the organizations behind the Platinum Quarterly report, reiterated that the document is not intended as investment advice. They encouraged seeking appropriate professional advice before making any investment decisions.
For further information and access to the full report, visit www.platinuminvestment.com.
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