Global Platinum market in 2025

Amid rising demand from the automotive and jewellery sectors, platinum is facing an acute supply deficit globally. The automotive sector’s demand for the precious metal will reach an eight-year high in 2025 but expects this to be offset by a significant decline in industrial demand, predicts the World Platinum Investment Council (WPIC),

WPIC also sees steady growth in the jewellery sector, which is anticipated to see a 2% increase in 2025, driven by a surge in Indian fabrication. Auto-makers adjust strategies to boost sales of lower-CO2, internal combustion engine-based hybrid vehicles to mitigate regulatory challenges, automotive platinum demand is projected to rise by 2% year-on-year to its highest level since 2017, according to WPIC chief executive officer Trevor Raymond.

WPIC reported that platinum supply remains severely constrained despite improvements in recycling, which is projected to edge up by 2% in 2024 and 1% in 2025., while releasing its Platinum Quarterly report for Q3 2024.

According to the report, the market is expected to reach a deficit in 2024 due to solid demand from the previous year, with sustained demand again exceeding supply.

Despite Q3 2024 supply growing by 7% year-on-year – primarily driven by increased stock releases in South Africa, which inflated the quarter’s output – global mined supply for 2024 will remain essentially flat compared to last year’s constrained levels, according to Mr Raymond.

The WPIC forecasts that net positive investment demand will continue for the third consecutive year, bolstered by Chinese bar demand. While industrial demand will remain above the 10-year average, it is expected to decline by 9% in 2025 as substantial capacity expansions taper. Global platinum mine supply for 2025 is forecast to contract by 2% (-133,000 ounces) year-on-year to 5.5Moz. The WPIC also noted several downside risks, such as the persistently low platinum group metal basket price and ongoing restructuring, that could persist into next year.

The headwinds recently affecting global platinum recycling supply may be nearing resolution. The 2024 forecast is for a 3% year-on-year improvement, followed by a 12% increase in 2025, which will nevertheless still be 8% below the pre-COVID five-year average, according to Mr Raymond.