WPIC: Global Platinum Market to Switch to Surplus In 2021

SEATTLE (Scrap Monster): The World Platinum Investment Council (WPIC) published its ‘Platinum Quarterly’ for the second quarter of the current year, revising its forecast for the year to modest surplus.

The Council expects the global platinum market to be in surplus of approximately 190,000 ounces in 2021, boosted by ramped-up mine supply. In the earlier quarterly report published in May this year, it had forecast a shortfall of 158,000 ounces. The surplus for the second quarter is estimated at 161,000 ounces, it said.

The economic recovery post-Covid-19 has benefited platinum demand and this is expected to continue for the rest of the year as well. The global platinum demand during Q2 2021 surged higher by 23% from Q2 last year to 1,907 koz. The demand for the full year is projected at 7,753 koz, marginally higher by 1% over the previous year. The global mine supply surged higher by over 65% over Q2 2020. However, recycle supply is yet to touch pre-pandemic levels.

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The platinum demand from automotive sector recorded a jump by 75% year-on-year, backed by increased production of light vehicles. For instance, demand was up by 130% in North America, fuelled by increased automotive production. This is despite ongoing semiconductor shortage, WPIC noted. The demand from industrial segment too was up by 46%.