Precious metals consultancy Metals Focus has published its new 2024 platinum group metals (PGM) market report which indicates that supply constraints and robust demand will be outweighed by high inventories to put a pressure on prices.
According to Mining Weekly which got access to the report, it includes historical supply and demand data from 2015 to 2023 and provides a detailed forecast for this year.
Metals Focus expects platinum prices to remain relatively stable in 2024 at $960 per ounce on average, while palladium prices may decrease by 23% compared to last year to $1030 per ounce on average. Meanwhile, significant rhodium inventory overhang will be offset by an increased glass and chemical industry demand to keep prices stable at $4750 per ounce in 2024.
According to the report, automotive demand for PGMs remained resilient last year, bolstered by the easing semiconductor crisis and increased production of light-duty vehicles. Mine supply struggled amid operational challenges and subdued PGM prices, leading to cost-cutting measures, including mine closures.
“The sharp fall in the PGM basket price is one of the greatest factors shaping the mining industry. 2023 saw a steep decline in palladium and rhodium prices, and platinum stagnating,” said Metals Focus PGM director Wilma Swarts.
“This has created margin pressure for the sector, with around half of South African PGM miners running uneconomically today, causing them to become increasingly reliant on by-products such as iridium and chrome.”
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
