South African mine output squeezing global platinum supply

Platinum demand outstripped supply for the third straight year in 2024. Declining South African mine output is contributing to the structural deficit in the platinum market, and the situation isn’t likely to improve soon.

Platinum offtake outpaced supply by 995,000 ounces last year. That was 46 per cent higher than forecast. The World Platinum Investment Council projects another market deficit of around 848,000 ounces in 2025.

Above-ground stocks of platinum fell by 23 per cent in 2024 and are expected to drop another 25 per cent this year. This represents less than four months of demand. 

A drop in South African platinum output, particularly in the Western Limb region, is a significant factor in the declining global platinum supply. The Western Limb accounted for 61 per cent of global platinum output in 2010.