AI Emerging Strong as New PGM Demand Driver

[SMM Flash] Iridium’s extreme physical and chemical properties make it one of the most difficult platinum-group metals (PGMs) to assay accurately. With a melting point of about 2,446°C and strong resistance to corrosion and conventional acids, iridium cannot be fully processed using the standard equipment and methods commonly used for gold, silver and other precious metals. Conventional sampling can produce significant errors because iridium remains solid during normal furnace processing and its high density causes iridium-rich particles to settle at the bottom of crucibles. Standard lead fire assay can also lose iridium through slag, crucible and cupel interactions. Specialised techniques such as nickel sulfide collection, alkaline fusion and molten-salt chlorination are therefore required for reliable analysis. The challenge is becoming increasingly important as iridium supply remains highly constrained. The metal occurs at extremely low concentrations in the Earth’s crust, is mainly recovered as a byproduct of other mining and has annual primary supply measured in only a few tonnes. With demand rising, particularly from PEM electrolyzers, accurate assaying is critical to maximise secondary recovery and ensure fair valuation of iridium-bearing materials.

[SMM Flash] Platinum's market outlook has strengthened significantly from the prolonged downturn described in earlier assessments, with persistent supply constraints now providing a stronger foundation for prices. The World Platinum Investment Council (WPIC) forecasts a fourth consecutive platinum market deficit in 2026, widening its estimate to 297 koz. Above-ground stocks are expected to fall to less than three months of global demand by year-end, highlighting increasingly tight physical availability. Mine supply is forecast to remain broadly flat while higher prices encourage recycling. Demand remains mixed. Automotive consumption continues to face structural pressure from battery-electric vehicle adoption, but hybrid vehicles, tighter emissions regulations and platinum substitution in autocatalysts are providing offsets. WPIC forecasts 2026 industrial demand to increase 9% to 2.24 Moz, supported partly by glass capacity expansion. Platinum's emerging applications in hydrogen technologies, semiconductor manufacturing and AI data-centre infrastructure could provide additional long-term demand, although the scale and timing remain uncertain. The near-term market is increasingly influenced by investment flows and the wider precious-metals environment. WPIC estimates that ETF outflows and exchange-stock reductions have removed around 750 koz from visible holdings in 2026, creating the possibility of a modest full-year surplus despite underlying physical tightness.