Automotive demand for Platinum likely to grow by 2% in 2016

SEATTLE (Scrap Monster): According to latest report published by the World Platinum Investment Council (WPIC), the automotive demand for platinum is expected to grow by 2% year-on-year in 2016. The demand from the sector is likely to touch 3.315 Million Oz next year. Meantime, the report predicts modest demand growth for the metal from other sectors such as jewellery making. Industrial and investment demand are also likely to deliver modest growth in 2016.

The supply-demand situation will move to a more balanced state in 2016, says WPIC. The total platinum supply from mines will grow by 4% over the previous year in 2016. Also, global platinum refined supply will report 2% increase to total 5.965 Million Oz next year.

The third quarter of the current year witnessed sharp rise in platinum demand from automotive sector. Q3 reported platinum deficit of 320,000 Oz. The deficit increased sharply from 20,000 Oz during the quarter before. Meantime, it must be noted that the metal had reported surplus of 240,000 Oz during third quarter last year. The rise in demand was mainly on account of increased platinum usage in light and heavy-duty autocatalysts.

According to WPIC, the total platinum supply in 2015 is expected to post growth of 6% to 7.73 Million Oz. The renewed output from strike-affected mines in South Africa will add to the output. At the same time, supply from recycled platinum is expected to decline sharply by nearly 7% on account of falling jewellery demand in China. However, robust automotive, industrial and investment demand growth is likely to offset the decline from jewellery sector. The overall platinum demand is expected to increase slightly to 8.03 Million Oz.

The World Platinum Investment Council has been formed by the six leading platinum producers to develop the market for platinum investment demand.