#None #Platinum #WPIC #Jewelry Demand

Overview

The World Platinum Investment Council (WPIC) has made a significant announcement regarding the platinum market, which is projected to experience its third consecutive annual deficit in 2025. This anticipated shortfall comes as the global demand for platinum is shifting, with an expected deficit of 966 koz.

Supply Decline

The figures reveal that the total supply of platinum in 2025 is projected to be the lowest seen in five years, decreasing by 4% to reach 6,999 koz. The primary driver behind this decline is a significantly reduced mine output, as the total mining supply is predicted to fall by 6% to 5,426 koz, marking a stark contrast to the five-year pre-COVID average. The first quarter of 2025 alone witnessed a remarkable 10% year-on-year reduction in global supply, underscoring the ongoing challenges faced by producers across major mining regions.

Resilience in Demand

Amidst these challenges, the demand for platinum jewelry has shown a resurgence, particularly in China, where it is expected to rise by 15%, contributing to a global jewelry demand increase of 5% this year. This rebound highlights platinum's competitive pricing compared to gold and reinforces the metal’s value in decorative applications.

Furthermore, although the automotive sector remains uncertain, it is anticipated that automotive demand for platinum will hold up relatively well, with only a 2% decline expected for the full year 2025, totaling 3,052 koz. This resilience is attributed to factors such as steady demand from non-road vehicles and reduced growth in battery electric vehicles.

Investment Demand

Investment demand continues to be robust, with a projected total of 688 koz for 2025. Notably, there has been a sharp increase in purchases of platinum bars and coins in China, reflecting a growing appetite among investors amid shifting market conditions. This demand contributed to a substantial 28% growth in investment-driven demand observed in the first quarter of 2025.

Market Dynamics

As geopolitical uncertainties evolve, the platinum market is navigating complex waters. Despite concerns surrounding tariffs and trade restrictions, the structural deficit indicates that overall market tightness is expected to persist, with above-ground stocks forecast to decline by 31% to 2,160 koz, which translates to just three months of demand cover. This critical shortage emphasizes the ongoing challenges within supply chains and production dynamics.

Conclusion

Trevor Raymond, CEO of the World Platinum Investment Council, commented on the situation by stating, "The platinum market is in structural deficit, irrespective of the uncertainties posed by today's geopolitics. We are seeing that platinum's diversity of demand provides a significant degree of resilience..." This cyclical downturn marked by declining supply and fluctuating demand reinforces the necessity for investors and stakeholders to strategically position themselves in anticipation of ongoing market shifts.

As the platinum landscape continues to evolve, remaining aware of shifts in investment trends and consumer preferences will be crucial for navigating the complexities of this precious metal market.