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Metal Recycling News November 30, 2021 03:00:51 PM

Nornickel Market Review Predicted Surplus Platinum Market

Paul Ploumis
ScrapMonster Author
Nornickel expects the platinum market to be in a surplus of 0.9 Moz this year.

Nornickel Market Review Predicted Surplus Platinum Market

SEATTLE (Scrap Monster): Norilsk Nickel (Nornickel)- the world’s largest palladium and high-grade nickel producer released review of the nickel and platinum group metals (PGM) markets. The review was prepared in partnership with ICBC Standard Bank.

The report states that the automotive industry- the primary consumer of PGMs such as platinum and palladium, witnessed disruption on account of chip supply shortage. The chip shortage is likely to cut vehicle production by over 8 million units. Although chip supply is expected to stage recovery in the second half of 2022, the automotive production is unlikely to return to pre-Covid-19 production levels until 2023.

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Meantime, metal recycling remained subdued, mainly due to lesser availability of new vehicles which resulted in lower car disposal rate.

The recovery in production in South Africa boosted the primary palladium supply to more than 0.5 Moz in 2021. This completely offset the lower output in Russia. The market balance has shifted to slight deficit of 0.2 Moz this year.

Nornickel expects the platinum market to be in a surplus of 0.9 Moz this year. Next year, the demand is expected to remain relatively flat. At the same time, boost in metal production will keep the market in a 1 Moz surplus.

The dramatic tightening of the world nickel market has forced Nornickel to revise the 2021 market balance, which it now expects to swing to a deficit of 149 kt. Also, it expects the market to switch to 59 kt surplus next year.

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