In the first quarter of this year, platinum supply and demand trends diverged in different directions, according to a report by the World Platinum Investment Council (WPIC).
The platinum shortage has increased markedly, driven by continued uncertainty related to U.
S. tariffs and production restrictions in South Africa, where heavy rainfall has led to flooding at some plants.
Total supply decreased by 10% compared to the same period in 2024, reflecting a weak quarter in production. At the same time, there was a modest recovery in secondary supply.
At the same time, demand increased by 10% due to an increase in CME (New York) inventories, as tariff-related uncertainty and high location premiums contributed to metal flows to the United States.
Demand in the automotive industry declined along with a reduction in quarterly production, as automakers reviewed strategies in light of possible tariff-related increases in the cost of raw materials and parts. Industrial demand has also declined.
As a result, WPIC experts decided to once again raise the forecast for metal shortages.
The global supply of platinum in the first quarter of 2025 was experiencing significant challenges in all major producing regions, with the exception of Russia.
South Africa accounted for the bulk of the drop in production. An extraordinary amount of precipitation fell in the country during the quarter. Heavy rains in February led to the collapse of the dam. As a result of the flooding, many enterprises were affected, but the most flooded was the Amandelbult underground mine, where work is expected to resume in full no earlier than the third quarter.
In Zimbabwe, maintenance, as well as optimization work and low ore content of the Unki deposit, affected Zimplats' production volumes.
"We estimate a 30% year-on-year decrease in production in North America. This reflects the restructuring of Sibanye-Stillwater's assets in the United States, as well as a reduction in associated platinum production from nickel mining in Canada," the council noted.
Global quarterly demand recorded a 10% increase.
Fears of Trump's barrage of tariffs triggered a flow of metal into the United States, with platinum trading at a premium in New York, leading to even more metal in CME warehouses. A total of about 361,000 ounces (11.23 tons) of platinum entered the United States in the first quarter, temporarily boosting investment demand.
Platinum consumption for autocatalysts decreased as manufacturers revised their plans due to the same duties.
Global demand for platinum jewelry
