Loading price data...
Scrap Monster
Olympus-ims.com
XRF Spectro
Platinum November 22, 2017 02:30:48 PM

World Platinum Market To Face Deeper Deficits in 2018

Paul Ploumis
ScrapMonster Author
In 2018, global supply is predicted to fall marginally by 1% to 7,755 koz. The mine closures during the second half of the current year will have huge impact on production levels in 2018.
World Platinum Market To Face Deeper Deficits in 2018

SEATTLE (Scrap Monster): The Platinum Quarterly Q3 2017 Report published by the World Platinum Investment Council (WPIC) predicts market deficit for Platinum in 2018, on the back of supply constraints coupled with 2% jump in demand.

According to WPIC Quarterly Report, world platinum market recorded supply surplus of 180 koz during Q3 ‘17.

The demand dropped by 8% year-over-year to 1,785 koz. Industrial demand recorded considerable decline during the quarter. Jewellery demand dropped by 4% on reduced intake by Chinese fabrication industry. The investment demand turned negative for the first time in two years. However, automotive demand grew marginally by 1% during the quarter.

The total supply too dropped by 3% to 1,965 koz. Refined production declined sharply by 4% over the previous quarter, mainly due to 24% decline in output from Zimbabwe. Russian output declined by 10%. The supply from recycled totaled 480 koz during the quarter, significantly down by 6% when compared with the previous year.

WPIC forecasts marginal 1% drop in global platinum supply during the entire year 2017. Reduced output by South Africa, Zimbabwe, Russia and North America will result in 2% decline in total mining supply. Meantime global platinum demand is expected to see sharp fall by 6% to total 7,845 koz in 2017. The report forecasts reduced consumption from industrial sector. Investment demand too is expected to remain subdued. Overall, market is likely to report a deficit of 15 koz.

In 2018, global supply is predicted to fall marginally by 1% to 7,755 koz. The mine closures during the second half of the current year will have huge impact on production levels in 2018. The global refined supply is estimated to total around 5,855 koz, lower by 1% over the previous year. South African output is likely to decline by 2%, whereas output from Russia and North America may remain flat. The supply of platinum from recycling is expected to grow by 2% in 2018 to total 1,900 koz.

Meantime, global platinum demand is forecast to grow by 2% in 2018 to 8,030 koz, on the back of anticipated recovery in industrial demand. The global automotive platinum demand is expected to remain stable. Global demand for platinum jewellery is forecast to grow by 3% to 2,655 koz in 2018. WPIC forecasts platinum jewellery demand to stabilize in China and report growth in other key markets, including India, the US and Western European countries. On the other hand, Japan is likely to report decline in demand. The total investment demand is forecast to total 250 koz during the next year.

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox
1 dollar 2010 - Navy Elizabeth II
Melt Value : US$ 13.915
1 dollar 2010 Elizabeth II
Melt Value : US$ 13.915
1 dollar 2008 Elizabeth II
Melt Value : US$ 13.915