WPIC: Platinum supply fell 13% in the first quarter, while demand went down by 26%

The World Platinum Investment Council (WPIC) said in its latest quarterly report that year-on-year quarterly supply and demand were down more than expected, at 13% and 26% respectively.
According to WPIC, this is due to geopolitical turmoil and supply chain disruptions in the first quarter of 2022, which significantly reduced supply and demand for platinum and heavily influenced the revised 2022 forecasts. The report said that full year 2022 supply is forecast down 5% with demand 2% higher than 2021.
“Automotive and jewellery demand holding up relatively well despite supply chain challenges and China’s zero-COVID policy. Industrial demand lower than record levels in 2021, but expected to remain the third strongest year on record. Investment demand for bar and coin remains elevated but is offset by weaker demand for ETFs and outflows from stocks held by exchanges,” WPIC said.
According to the authors of the report, supply security concerns will prevail in the short term, affecting the market balance after the start of Russia's military operation in Ukraine, given the importance of Russia for the world's supply of mined palladium and, to a lesser extent, mined platinum. “Concerns could increase platinum for palladium substitution efforts and potentially modify procurement and inventory management strategies,” WPIC notes adding that, in addition, the EU actions to displace Russian natural gas with green hydrogen significantly boost the case for fuel cell electric vehicles and platinum demand growth over the medium term.