Platinum

Platinum Global Market Outlook

• South Africa continues to dominate the global market share in the production of platinum with 4570 koz, accounting for a global supply share of 73 percent. Russia stands next occupying a global share of 11 percent with 670 koz production, in the previous year.

• Mine production in South Africa is expected to recover in 2023.

Platinum: Market Overview – Global

• Global platinum mine production is expected to increase marginally by 2-3% to 6.46 million ounces in 2023, although the western nations have imposed sanctions on Russia they have not targeted PGM miners to such an extent as compared to the steel industry for instance.

• In 2023, platinum supply-demand balance may improve albeit to a marginal extent. The major risks in H1 2023, are due to the high inflation and interest rates and volatile macro-economic landscape.

• Although output was boosted in 2022 due to stockpiled material being process, the magnitude change was lower as compared to the earlier year which saw a boost due to post pandemic recovery phase.

• The production in Zimbabwe is expected to be more consistent and grow at a steady phase following the debottlenecking at Unki and the continued ramp up of Bimha and Mupani mines.

• Platinum usage in the hydrogen economy is increasing from a low base, with increases in both fuel cell vehicle production and electrolysers installations expected in the upcoming years.

• Demand for the platinum is set to witness robust growth in the near future, especially in Europe and China. Stricter emission regulations to comply with real driving emission (RDE) standards will continue to pave way for an increase in consumption of platinum by European automakers. On the other hand, Chinese automakers are considering the replacement of palladium with platinum, and thus the platinum demand in Chinese market is likely to increase significantly in the near future.

• Other industrial sources of platinum usage are also strong, despite the rising international rate environment, negative macroeconomic sentiments. China remains the largest consumer in the jewelry sector and if the demand can recover after years of decline, and overcome the headwinds due to the covid related outbreaks, it could serve to bolster the platinum demand further in the long term by 2025.

Global Platinum Market: Drivers and Constraints 

Stricter emission controls by major countries like Europe, China will continue to remain as the most significant growth driver of the platinum metal. The role of platinum in green hydrogen strategy by EU will be a key trend to watch in the near future.

Drivers

• Euro 6d- Stricter emission regulations to comply with real driving emission (RDE) standards

• Increasing demand for hydrogen powered engines(Fuel Cell Electric Vehicles)

• Substitution of palladium by platinum

Constraints 

• Lingering presence of covid cases in China

• Production highly concentrated in South Africa

• Volatility in Copper and Nickel market