According to this year's forecast for industrial platinum demand, it may be the second strongest year on record. Demand is expected to climb ten per cent to 2,316 koz due to increase in demand from the glass industry.
The strong demand 2023 in industrial platinum demand is attributed to and diversified foundations which leave it well-insulated from the recessionary outlook.
For instance, 2021 was a record year for industrial platinum demand, reaching 2,450 koz. This was primarily due to significant glass manufacturing capacity expansions which were not repeated to the same extent in 2022, resulting in a 14 per cent reduction in demand last year to 2,110 koz, when compared to the prior year.
Now, in 2023, much of the predicted growth in demand is due to capacity expansions in the glass industry which have already been committed and will go ahead irrespective of economic conditions.
As growth in capacity expansions will be in China as well as fibreglass plant projects in Egypt, platinum glass demand is expected to jump by 52 per cent to 481 koz in 2023 – more than double the level in pre-pandemic 2019.
In the chemical sector, demand is forecast to increase by six per cent to 666 koz in 2023, remaining similar to the five-year average. Demand for platinum in the production of nitric acid is expected to recover strongly in 2023.
Elsewhere, faster development of Chinese propane dehydrogenation capacity, following a slow 2022, and expanded capacity in North America, Poland and Kazakhstan, will add to platinum demand. Platinum use in the paraxylene and silicone markets will remain broadly level year-on-year.
Meanwhile, platinum demand from the petroleum Industry is projected to decline in 2023 by ten per cent to 180 koz. Medical demand is expected to resume its growth trend as the impact of the pandemic recedes, with forecasts showing a three per cent increase to 283 koz, surpassing the 2019 pre-pandemic level for the first time.
Emerging markets, notably China and India, will see the greatest increase in demand due to their high-growth medical industries. Other industrial demand is expected to rise by three per cent to 599 koz in 2023.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
The strong demand 2023 in industrial platinum demand is attributed to and diversified foundations which leave it well-insulated from the recessionary outlook.
For instance, 2021 was a record year for industrial platinum demand, reaching 2,450 koz. This was primarily due to significant glass manufacturing capacity expansions which were not repeated to the same extent in 2022, resulting in a 14 per cent reduction in demand last year to 2,110 koz, when compared to the prior year.
Now, in 2023, much of the predicted growth in demand is due to capacity expansions in the glass industry which have already been committed and will go ahead irrespective of economic conditions.
As growth in capacity expansions will be in China as well as fibreglass plant projects in Egypt, platinum glass demand is expected to jump by 52 per cent to 481 koz in 2023 – more than double the level in pre-pandemic 2019.
In the chemical sector, demand is forecast to increase by six per cent to 666 koz in 2023, remaining similar to the five-year average. Demand for platinum in the production of nitric acid is expected to recover strongly in 2023.
Elsewhere, faster development of Chinese propane dehydrogenation capacity, following a slow 2022, and expanded capacity in North America, Poland and Kazakhstan, will add to platinum demand. Platinum use in the paraxylene and silicone markets will remain broadly level year-on-year.
Meanwhile, platinum demand from the petroleum Industry is projected to decline in 2023 by ten per cent to 180 koz. Medical demand is expected to resume its growth trend as the impact of the pandemic recedes, with forecasts showing a three per cent increase to 283 koz, surpassing the 2019 pre-pandemic level for the first time.
Emerging markets, notably China and India, will see the greatest increase in demand due to their high-growth medical industries. Other industrial demand is expected to rise by three per cent to 599 koz in 2023.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
