For the first time in three years, the global platinum market is set for a rebound as it faces supply challenges and a surge in demand. This is set to result in a supply deficit and is likely to increase platinum prices, as mentioned in kitco.com.
Ole Hansen, head of commodity strategy at Saxo Bank suggests that the return of investor demand through ETFs could push the platinum market into a supply deficit. Also, the Russia-Ukraine geopolitical situation led to an uptick in platinum demand as automakers substitute the metal for palladium. Russia is pallidum-rich, and as of 2022, one Russian mining company, MMC Norilsk Nickel PJSC, the world's largest nickel producer, produces about 40% of Russian palladium. Russia produces about 30-40% of the world’s palladium, notes kitco.com.
Now, with Russia facing Western sanctions, finding some substitute has become necessary and that’s where platinum has won. As platinum is increasingly used as a substitute for palladium in the production of emission-control catalytic converters, its demand is expected to grow. In addition, platinum's role in environmental-friendly hydrogen fuel-cell-powered vehicles makes it an essential component in the push for greener technology.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
Ole Hansen, head of commodity strategy at Saxo Bank suggests that the return of investor demand through ETFs could push the platinum market into a supply deficit. Also, the Russia-Ukraine geopolitical situation led to an uptick in platinum demand as automakers substitute the metal for palladium. Russia is pallidum-rich, and as of 2022, one Russian mining company, MMC Norilsk Nickel PJSC, the world's largest nickel producer, produces about 40% of Russian palladium. Russia produces about 30-40% of the world’s palladium, notes kitco.com.
Now, with Russia facing Western sanctions, finding some substitute has become necessary and that’s where platinum has won. As platinum is increasingly used as a substitute for palladium in the production of emission-control catalytic converters, its demand is expected to grow. In addition, platinum's role in environmental-friendly hydrogen fuel-cell-powered vehicles makes it an essential component in the push for greener technology.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
