A surge in platinum demand, especially from the industrial sector, will exacerbate the global platinum supply deficit in 2023, the World Platinum Investment Council (WPIC) said.
According to WPIC data, global platinum demand will rise by 28% this year compared with 2022, while supply will fall by 1% year-on-year.
The WPIC estimates that industrial demand for platinum, particularly from chemical and glass production in China, is on track to reach its highest level on record. Demand from the automotive industry also continues to be strong.
Investors took a genuine interest in the precious metal in the first quarter of 2023, with investment demand for platinum bars and coins up 71% year-on-year.
On the production front, recent rolling blackouts in South Africa, a country whose mining industry accounts for around 70% of world supply, have disrupted platinum production. Meanwhile, demand is coming at a time of strength, with a projected platinum deficit of 983,000 ounces in 2023, compared with the 556,000 ounce deficit forecast by the association in March. In addition to South Africa, Western sanctions on Russia will also lead to a decline in global supply, WPIC said.
Platinum’s supply deficit is likely to persist for years unless there is a significant increase in supply or a significant reduction in demand, said Trevor Raymond, chief executive of WPIC, while also saying that interest in platinum investment is likely to spread to other regions as well.
Raymond believes that the uncertain global economic environment, inflation headwinds and energy crisis provide a challenging macroeconomic backdrop for the platinum industry, but the chances of the precious metal falling in value are low. He added: “Platinum demand is expected to grow by 28% year-on-year in 2023, which is why it is hard to fall.”
Overall, the global platinum shortage is set to worsen in the coming quarters, leading to one of the worst shortages in platinum in half a century, which should continue to support spot prices for the metal.
More popular news:
'Bond King' Jeffrey Gundlach Says Sharp Fed Rate Cuts By Year-End Will Push Up Gold Prices
IMF: US Debt Defaults Will Take a Heavy Toll on Global Economy, Global GDP Growth Can Plunge
Goldman Sachs Sees European Gas Prices Tripling, Gives Price Forecast in H2 2023
BofA Sharply Lowers Forecast for Oil Price, Global Oil Consumption in 2023
Takeaways of Warren Buffett and Berkshire Hathaway’s 2023 Annual Meeting
US Treasury Bill Rates Soar to Record High on Debt Ceiling Jitters
No Other Country can Replace China's Manufacturing Industry Including India
Global Manufacturing PMI in April Points to Greater Downward Pressure on Global Economy
SMM Daily Comments (May 5): LME Base Metals Rose across the Board, SHFE Nickel Plunged
A Bull Gold Market Has Just Begun
Copper Shortage Is Irreparable Even after Biggest Mergers and Acquisitions, Here’s Why
![Les contrats à terme sur le platine et le palladium fluctuent fortement, avec un environnement de forte volatilité persistant à court terme [Revue hebdomadaire SMM du platine et du palladium]](https://imgqn.smm.cn/usercenter/wDeWQ20251217171734.jpeg)
