Platinum Demand Growth Outstrips Constrained Supply

The platinum market is forecast to move to a material deficit in 2023 following two years of significant surpluses, latest figures from the World Platinum Investment Council (WPIC) show. 

The prediction comes as demand for the precious metal is set to grow by almost a quarter (24%), whilst supply is forecast to rise by just three percent, due to severe constraints. Demand for platinum in the automotive industry is predicted to increase by 10% in 2023, whilst industrial requirements are set to rise by 12% year-on-year – almost matching its strongest year on record. 

The revised forecast for 2023 has been set out by the WPIC in its latest Platinum Quarterly report, which includes the final quarter of 2022 and the full year 2022. Whilst platinum experienced a 776 koz surplus last year, the forecast deficit for 2023 is 556 koz – a change of more than 1.3 moz. 

Overall in 2022, total supply was down by 12%, whilst global platinum recycling fell 17% year-on-year due to reduced availability of end-of-life vehicles and also lower jewellery recycling. Global recycling is expected to recover by 10% in 2023, with automotive autocatalyst recycling due to increase by 12%. 

Read the full report here.