The World Platinum Investment Council (WPIC) has published its quarterly review for Q1 2024 and revised its full-year platinum market forecast, expecting the deficit to remain strong amid weaker supply.
Global platinum demand in the first quarter of 2024 rose to 1.994 million ounces amid an upswing in jewellery demand combined with a steady demand growth in the automotive sector. The supply in the reporting quarter fell to the second lowest level in WPIC’s review history to 1.625 million ounces doe to lower mining and recycling levels, which led to a market deficit of 369,000 ounces.
For the full year, total supply is expected to remain flat on the weak levels of 2023 at 7.111 million ounces while the demand is projected to reach 7.587 million ounces. A resulting market deficit will amount to 476,000 ounces in 2024.
“For the second consecutive year, the platinum market will post a meaningful deficit underscored by platinum's sustained demand and supply vulnerability amidst global economic challenges. While we currently forecast a deficit of 476,000 ounces, it is worth mentioning that a revision to the bar and coin investment series, based on new field research and information, could mean this deficit is potentially deeper,” said WPIC’s CEO Trevor Raymond.
“Platinum’s significant demand in 2024 is to a large extent predicated on continued platinum automotive demand growth. This is despite a forecast rise in battery electric vehicles and reduction in internal combustion engine vehicle production. Platinum demand is bolstered by stricter emissions legislation, increased hybrid vehicles that contain an internal combustion engine, and growth in the substitution of platinum for palladium.”
He added that WPIC sees signs that platinum’s role in the hydrogen economy is gaining momentum to reach meaningful levels in 2024. Gradually, this trend is capturing global investor interest, offering investors a way to engage with assets associated with global decarbonisation.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
