The global platinum market is projected to experience a structural deficit for the third consecutive year in 2025, according to the World Platinum Investment Council (WPIC). This ongoing shortfall is attributed to constrained mine supply, despite increased recycling efforts and a slight decline in overall demand.
Key Highlights:
Deficit Forecast: The WPIC estimates a shortfall of 539,000 troy ounces of platinum in 2025, a revision from this year’s estimated deficit of 682,000 ounces. This marks a significant continuation of deficits in the platinum market.
Demand Trends:
Automotive Sector: Demand from the automotive industry, which relies on platinum for catalytic converters, is expected to grow to an eight-year high in 2025. After a 2% decline this year, automotive demand is projected to recover by 2% next year, driven by increased sales of hybrid vehicles and stricter emissions regulations.
Jewelry Demand: Jewelry demand is also anticipated to rise for the second consecutive year after previously hitting a low point.
Supply Dynamics:
The WPIC forecasts a 2% decline in mine supply in 2025, primarily due to reduced production in South Africa. However, this decline will be fully offset by a 12% increase in recycled platinum supply.
A more stable power supply in South Africa has allowed mines to process more concentrates, contributing to a better-than-expected supply situation this year.
Above-Ground Stocks: To meet the anticipated deficit, above-ground platinum stocks are expected to decrease by 15%, bringing them down to 3.0 million ounces, which is equivalent to just over four months of global demand.