The World Platinum Investment Council (WPIC) said in its latest quarterly report that the global platinum market is forecast to run a deficit of 303 koz, up just 2% to 7,466k koz.
The WPIC cited supply constraints and increased demand for bars and coins, revising its 2022 market surplus forecast down 17% to 804 koz.
"The platinum market is forecast to be in deficit after two consecutive years of significant surpluses. This reflects supply that remains well below pre-pandemic 2019 levels and demand growth, despite the unfavorable economic outlook," said World Platinum Investment Council CEO Trevor Raymond. "Platinum [is] in a somewhat unique position versus other commodities in that demand is forecast to continue to grow, despite the recessionary outlook."
A WPIC report showed that in the third quarter of 2022, demand for automotive platinum rose 25% year-on-year.
The report says that a combination of higher passenger car production, tighter HDV emissions regulations in China and India, and growing substitution of platinum for palladium will lead to an expected increase in demand for platinum of around 12% (+329 koz) this year, to 2,964 koz.
Automotive demand is expected to grow at the same pace in 2023 as it did in 2022, up 11% to 3,288 koz.
Another push for platinum prices could come from pressure on wages and power shortages at mines in South Africa, the world's largest producer of platinum.
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