Platinum stocks fall to four months as supply deficit looms

THE platinum market is heading towards another major deficit this year while above-ground stocks of the metal fall to only four months’ worth of cover.This is according to the World Platinum Investment Council (WPIC) which said on Wednesday in its first quarter update that platinum supply was also expected to fall.Although demand for the metal would also fall this year, the council forecast an overall supply deficit of 848,000 ounces for 2025. This compares to a deficit of 995,000 oz last year – far higher than the WPIC first forecast and a sign of possible upward price pressure on the metal. The platinum price has gained nearly 9% in the last 12 months and was 7.65% higher year-to-date.“Platinum’s sustained consecutive annual deficits, almost one million oz in 2024, contain some investment flows related to the recent tariff-driven chaos but are largely structural in nature,” said Trevor Raymond, CEO of the WPIC.For 2025, the WPIC said demand would be five per cent lower at 7,85 million oz while total supply is projected to decrease by 4% year-on-year to seven million oz.Commenting on the supply picture, the council said refined output would fall five per cent to 5.5 million oz owing to production cuts in North America. Last year, Sibanye-Stillwater announced a halving in production at Stillwater mine to about 300,000 oz/year while Impala Platinum said production at the Lac des Iles mine in Canada would be run down as it sought out only profitable oz from the operation.“Meanwhile, downside risks, such as the persistently low platinum group metal (PGM) basket price that has resulted in significant restructuring, remain,” said the WPIC. Northam Platinum CEO Paul Dunne said at the firm’s interim results presentation on Friday (February 28) that South African production was unalterably heading for a decline.The balance of supply is from recycling. It fell one percent to 1,49 million oz representing the lowest level recorded by the WPIC since 2013.“The ongoing decline in mine supply continues, potentially accelerating as stock release benefits taper further,” said Raymond. “At the same time, the previously anticipated recovery in recycling failed to materialise in 2024.”Above ground stocks declined 23% to 3,38 million oz in 2024 and are forecast to decline by a further 25% in 2025 to 2,54 million oz.On the demand side, the automotive sector is a major constituent owing to its consumption of platinum in autocatalysis. The WPIC said today automotive demand would reduce one percent to 3.1 million oz amid a 22% year-on-year increase in battery electric vehicle production.The post Platinum stocks fall to four months as supply deficit looms appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com