SMM Forecast for Global Platinum and Palladium Demand in 2023

SHANGHAI, Feb 28 (SMM) – In 2023, the total global demand for platinum will be 7,770 koz. The demand from automobiles will be the largest, accounting for 2,975 koz or 38.3%, mainly used in the production of automotive catalysts. Jewellery and chemicals will come in second, standing at 1,573 koz and 880 koz and accounting for 20.3% and 11.3%. The demand from other downstream sectors, including petroleum smelting, electronics, medical care, glass, and investment, will be 2,341 koz, accounting for 30.1%.

In 2023, the total global demand for palladium will be 10,342 koz. The demand from automobiles will also be the largest, and stand at 8,446 koz, accounting for 81.7%, mainly used in the production of automotive catalysts. Electronics and chemicals will come in second, with the demand totalling 696 koz and 690 koz respectively, each accounting for around 6.7%. The demand from other industries, including jewellery, medical care and investment will total 511 koz, accounting for 4.9%.

SMM expects industry demand to fluctuate slightly in the first half of the year and improve in the second half of the year.

Under the forecast of the above-mentioned macroeconomic situation, it is expected that the auto industry will pick up slowly in the first half of 2023, and production will improve in the second half of the year.

Despite the fluctuations in car production, the per-vehicle load of platinum-palladium catalysts will benefit from stricter exhaust emission standards.

It is expected that the demand from traditional industries will show sectoral and regional differences.

On the one hand, it is expected that the demand of China's chemical and glass industry will increase. On the other hand, as European refineries are grappling with the impact of the embargo on Russian crude oil, platinum catalysts used in the refining industry may go back to the market.

Considering that European countries encountered an energy crisis in 2022, this will accelerate European and global investment in new energy industries.