Recently, World Platinum Investment Council (WPIC) said, Platinum market enters its third year of substantial deficits! in the just published their Platinum Quarterly-Q1 2025. The platinum market is expected to record a deficit of 966 koz this year, which follows a 992 koz deficit in 2024.
The forecast platinum market deficit for 2025 has been increased from the 848 koz reported in the March 2025 Platinum Quarterly primarily due to upward revisions in global platinum demand.
Supply risks remain a prominent theme in 2025. In Q1 2025, mining supply declined by -13% year-on-year to record its lowest output since Q2 2020 which was in the height of COVID lockdowns.
While mining should benefit from improved processing capacity availability over the rest of the year, refined output is still expected to be 6% lower in 2025, which in terms of total supply is partially offset by a 3% year-on-year rise in recycling in 2025. Nonetheless, a -4% year-on-year reduction in total platinum supply in 2025 perpetuates the ongoing structural erosion of platinum supply (-1.2% CAGR since 2015).
Total platinum demand is expected to decline by -4% year-on-year in 2025. While risks to international trade have drawn significant focus in the first quarter, lower demand in 2025 is largely due to a cyclical trough in glass demand where capacity additions have slowed in China.
Sectors such as automotive, jewellery and investment are arguably more sensitive to short-term shifts in trade policies. However, lower automotive demand and jewellery production for export to the US have been offset by upward revisions to Chinese jewellery and investment demand. Accordingly, total 2025 platinum demand is revised up by +115 koz since our March 2025 Platinum Quarterly.
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