SEATTLE (Scrap Monster): The World Platinum Investment Council (WPIC) foresees global platinum market touching biggest surplus in many years in 2021. The surplus for the year is likely to exceed its previous forecast. Moreover, WPIC hints at huge oversupply in 2022 as well.
The WPIC report says that platinum market would be oversupplied by 769,000 ounces in 2021, the highest since 2013. Also, it estimates the oversupply to record marginal decline in 2022 to total 637,000 ounces. Earlier in September this year, WPIC had predicted surplus of 190,000 ounces. Also, it must be noted that the Council had predicted deficit platinum market in May this year.
The supply from South Africa increased significantly, following faster processing of built-up inventory. At the same time, demand from automakers recorded drastic decline, mainly on account of cut in production due to chip shortage.
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The WPIC noted that production of platinum will dip in 2022 or 2023 after the exhaustion of South African inventory. Also, the demand for the metal from automakers as well as investor demand for platinum bars and coins is expected to rise in 2022.
The prices of the metal had hit peaks of $1,336.50 per ounce in February this year, but have declined to hit levels near to $1,000 per ounce since then.