Global platinum market faces deeper deficits in 2018

The WPIC predicts a 1% drop in global platinum supply throughout 2017. Reduced production in South Africa, Zimbabwe, Russia and North America will result in a 2% decline in total production. Global platinum demand is expected to decline sharply by 6% in 2017 to 7,845 Koz. The report predicts a decline in consumption from the industrial sector. Investment demand is expected to remain subdued. Overall, the market is likely to report a deficit.

Global shipments are expected to fall slightly 1% in 2018 to 7,755 Koz. The closure of mines in the second half of this year will have a huge impact on production levels in 2018. Global refined supply is estimated to be around 5,855 Koz, down 1% from the previous year. South African output is likely to decline 2%, while output from Russia and North America may remain even lower. Platinum shipments from the downstream sector are expected to grow by 2% in 2018.

Meanwhile, global platinum demand is expected to rise 2% in 2018 to 8,030 Koz on the back of an expected rebound in industrial demand.