UNITED KINGDOM March 16 2015 2:43 PM

LONDON (Scrap Register): Global demand for platinum fell in 2014, according to the latest information from the World Platinum Investment Council (WPIC). The producer backed group released its survey of the 2014 platinum market on March 11, with three important takeaways.

The net decline in global demand for the metal hides strong demand growth in all sectors except investment demand. Automotive, industrial, and jewellery consumption all rose by 200koz in total. The autocatalyst market, which uses platinum to reduce harmful gas emissions, increased its usage of platinum by 3.5% in 2014.

This growth came mainly from Western Europe and was the result of the region’s stricter environmental legislation coming into force, which is likely to continue to affect the market in 2015.

Industrial usages of platinum rose 3% for the year, driven by increased consumption in the petroleum sector. Platinum jewellery demand increased by 1.5%, a relatively weak result relative to the other sectors but reflective of a slowdown in China’s appetite for platinum jewellery.

Despite these increases in consumption, overall demand fell because of outflows in investment demand. Although the risk of disinvestment lingers, Barclays believes underlying autocatalyst and industrial demand growth should support prices.

The report concluded that despite lower demand, the overall market remained in deficit for the year by 700 koz. Barclays foresees the market continuing to remain in deficit in 2015 by 522 koz. An improving global economy in the developed world and continuing issues regarding supply will both act to tighten up the market, maintaining the deficit and supporting a price recovery.