Platinum Market Faces Ongoing Deficits with Investment and Jewellery Demand Growth
The World Platinum Investment Council (WPIC) has published its Platinum Quarterly report for Q4 2024 and the full year, providing an updated forecast for 2025. The platinum market recorded a significant deficit of 995 koz in 2024, exceeding earlier projections by 46%, as total demand surpassed 8 Moz for the first time since 2019. Strong investment inflows and an 8% rise in jewellery demand contributed to a 5% year-on-year increase in total demand, which reached 8,288 koz, while supply grew 3% to 7,293 koz.
For 2025, a third consecutive deficit is projected at 848 koz. Demand is expected to decline 5% to 7,850 koz, while total supply is forecast to decrease 4% to 7,002 koz. Mine supply is set to contract by 5%, particularly in North America and South Africa, with minimal improvement in recycled supply due to persistent headwinds.
Automotive platinum demand remained strong at 3,130 koz in 2024 and is expected to hold steady at 3,102 koz in 2025 despite a 22% rise in BEV production. Meanwhile, platinum jewellery demand increased 8% in 2024 to 1,993 koz and is projected to grow 2% in 2025, surpassing 2 Moz for the first time in six years.
Investment demand surged 77% in 2024, driven by ETF inflows and strong bar demand in China. This trend is expected to continue in 2025, with investment demand projected to remain elevated at 606 koz, albeit down 14% year-on-year.
Above-ground stocks fell by 23% in 2024 to 3,383 koz and are forecast to decline another 25% in 2025 to 2,535 koz, equivalent to less than four months' worth of demand.
