16 min
Platinum demand outlook pretty robust, World Platinum Investment Council highlights Mining Weekly Audio Articles
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The outlook for platinum is one that's pretty robust, the World Platinum Investment Council (WPIC) has highlighted in its latest Platinum Quarterly, which shows the projection of the metal's demand as being very encouraging amid a near-record-low supply prediction.
Automotive demand is at a seven-year high, while first-quarter jewellery demand increased contrasted with a worsening supply deficit of 476 000 oz.
Hybrid vehicle preference is pointing to a higher-for-longer automotive demand scenario with extended range electric vehicles still needing platinum group metals (PGM) in the exhaust treatment system.
More than $300-billion worth of government subsidies are focusing so much attention on the hydrogen economy that a separate Platinum Quarterly line item for stationary hydrogen demand has been included for the first time, against the background of 100%-plus near-term growth projection.
Meanwhile, the industrial profile for platinum remains healthy with more glassfibre manufacturing capacity upping the outlook for future demand for the metal that is finding an increasing number of roles to play.
Also, a network of partnerships is uplifting the fabrication and sale of platinum bar and coin in China and a highly successful cricket sponsorship has thrust male platinum jewellery demand in India on a quickly elevating 50%-plus growth horizon.
These are among many PGM advances raised in a far-reaching Zoom interview that Mining Weekly conducted with WPIC reseach director Edward Sterck. (Also watch attached Creamer Media video.)
On specific factors contributing to the forecast decrease in mined platinum supply, especially in South Africa and Russia, Sterck said the factors at work included the restructuring announcements made by the South African PGM mining companies in response to a depressed basket price as a result of the fall in the prices of palladium and rhodium.
"In very basic terms, we think that the restructuring announcements are reducing operational flexibility and that flows into the production numbers. You've also got some operational as well as geopolitical challenges in Russia. On the operational side, Russia is undertaking some maintenance on one of its more material smelters in terms of capacity. Secondly, the country is struggling to navigate their way through the sanctions that have been imposed on Russia in general," he said, adding that recycling is also running 12% to 15% below pre-Covid averages.
Mining Weekly: What has led to the recent rise in bar and coin demand in China, and how might this affect the overall market balance?
This is an area that we, as the World Platinum Investment Council, have been working quite hard on. As part of our organisation, we're trying to help producers manufacture bar and coin and sell investment products to predominately retail audiences but also to institutional investors as well. We've developed a network of partnerships in China for the fabrication and selling of bar and coin and we've just helped them with things like design and marketing, and had a great deal of success. Over the last few years, that has grown quite significantly.
The numbers that we're factoring into Platinum Quarterly supply/demand estimates were 52 000 oz last year and a forecast of 60 000 oz this year, and that's all in the smaller bar and coin categories. This is less than 500 g bars. On top of that, there are large bars that we have helped facilitate the production and sale of. Just putting a rough number on last year, there's another 100 000 oz of larger bars that are produced and sold in China that don't feature in our base case supply/demand analysis. If you factor those into this part of our balance, we take our deficit from 476 000 oz, add another 100 000 oz of larger bars on to that, you get pretty close to 600 000 oz in terms of a supply/demand deficit.
How is the growth in India's platinum jewellery market i
This audio is brought to you by Wearcheck, your condition monitoring specialist.
The outlook for platinum is one that's pretty robust, the World Platinum Investment Council (WPIC) has highlighted in its latest Platinum Quarterly, which shows the projection of the metal's demand as being very encouraging amid a near-record-low supply prediction.
Automotive demand is at a seven-year high, while first-quarter jewellery demand increased contrasted with a worsening supply deficit of 476 000 oz.
Hybrid vehicle preference is pointing to a higher-for-longer automotive demand scenario with extended range electric vehicles still needing platinum group metals (PGM) in the exhaust treatment system.
More than $300-billion worth of government subsidies are focusing so much attention on the hydrogen economy that a separate Platinum Quarterly line item for stationary hydrogen demand has been included for the first time, against the background of 100%-plus near-term growth projection.
Meanwhile, the industrial profile for platinum remains healthy with more glassfibre manufacturing capacity upping the outlook for future demand for the metal that is finding an increasing number of roles to play.
Also, a network of partnerships is uplifting the fabrication and sale of platinum bar and coin in China and a highly successful cricket sponsorship has thrust male platinum jewellery demand in India on a quickly elevating 50%-plus growth horizon.
These are among many PGM advances raised in a far-reaching Zoom interview that Mining Weekly conducted with WPIC reseach director Edward Sterck. (Also watch attached Creamer Media video.)
On specific factors contributing to the forecast decrease in mined platinum supply, especially in South Africa and Russia, Sterck said the factors at work included the restructuring announcements made by the South African PGM mining companies in response to a depressed basket price as a result of the fall in the prices of palladium and rhodium.
"In very basic terms, we think that the restructuring announcements are reducing operational flexibility and that flows into the production numbers. You've also got some operational as well as geopolitical challenges in Russia. On the operational side, Russia is undertaking some maintenance on one of its more material smelters in terms of capacity. Secondly, the country is struggling to navigate their way through the sanctions that have been imposed on Russia in general," he said, adding that recycling is also running 12% to 15% below pre-Covid averages.
Mining Weekly: What has led to the recent rise in bar and coin demand in China, and how might this affect the overall market balance?
This is an area that we, as the World Platinum Investment Council, have been working quite hard on. As part of our organisation, we're trying to help producers manufacture bar and coin and sell investment products to predominately retail audiences but also to institutional investors as well. We've developed a network of partnerships in China for the fabrication and selling of bar and coin and we've just helped them with things like design and marketing, and had a great deal of success. Over the last few years, that has grown quite significantly.
The numbers that we're factoring into Platinum Quarterly supply/demand estimates were 52 000 oz last year and a forecast of 60 000 oz this year, and that's all in the smaller bar and coin categories. This is less than 500 g bars. On top of that, there are large bars that we have helped facilitate the production and sale of. Just putting a rough number on last year, there's another 100 000 oz of larger bars that are produced and sold in China that don't feature in our base case supply/demand analysis. If you factor those into this part of our balance, we take our deficit from 476 000 oz, add another 100 000 oz of larger bars on to that, you get pretty close to 600 000 oz in terms of a supply/demand deficit.
How is the growth in India's platinum jewellery market i
16 min