Global body sees platinum market in deficit for third year running
This story was originally published at 14:45 IST on 6 March 2025
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MUMBAI – The global platinum market is expected to be in a deficit of 848,000 ounces this year, the World Platinum Investment Council said in a release. This will be the third consecutive year with a deficit. The market had recorded a deficit of 995,000 ounces in 2024 and 809,000 ounces in 2023. The council expects demand to be 5% lower on year at 7.85 million ounces this year, while total supply is forecast to fall by 4% on year to 7 million ounces.
In 2024, total demand for platinum rose 5% on year to 8.3 million ounces, exceeding the 8 million mark for the first time since 2019. The rise was on account of strong investment demand, propelled by inflows into exchange-traded funds, and growth in jewellery demand, the council said. Total supply reached 7.3 million ounces in 2024, up 3% on year.
"Platinum's sustained consecutive annual deficits, almost 1 Moz (million ounces) in 2024, contain some investment flows related to the recent tariff-driven chaos but are largely structural in nature," Trevor Raymond, chief executive officer of the World Platinum Investment Council, said.
In 2025, refined platinum mine supply is forecast to fall by 5% on year to 5.5 million ounces because of palladium-related decline in North America and reduced output in South Africa, the release said. Demand from the automotive industry is expected to fall by 1% on year to 3.1 million ounces, due to a 22% on-year growth in electric vehicles, which do not use platinum.
Jewellery demand is set to rise by 2% on year to 2 million ounces due to robust demand from India and China. Platinum's significant price differential to gold will continue to be a key driver of demand growth, it said.
Meanwhile, industrial demand for the metal is expected to decline 14% on year to 2.1 million tonnes in 2025, owing to an anticipated slowdown in the cyclical glass capacity expansions that boosted demand substantially last year, the release said. In 2024, industrial demand was at 2.5 million ounces.
Investment demand in 2025 is seen at 606,000 ounces, down 14% on year. ETF holdings and stocks held by exchanges are expected to rise by 100,000 ounces and 150,000 ounces, respectively.
"Platinum jewellery is set to grow for the second consecutive year in 2025 with increases across all regions as the stellar gold price is benefiting platinum jewellery. The record high gold price has caused the value of retail gold jewellery stocks to stretch balance sheets, resulting in the switching of some inventory to platinum," Raymond said. End
Reported by Ashutosh Pati
Edited by Rajeev Pai
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