WPIC: The platinum market has reached a balance
In the second quarter of 2025, the global platinum market moved closer to balancing the deficit to 11,000 ounces from 672,000 ounces in the first quarter, resulting in increased supply and lower demand, according to the World Platinum Investment Council (WPIC).
Against this background, WPIC adjusted the forecast of metal shortage for 2025 to 850 thousand ounces from 968 thousand ounces, previously expected due to increased jewelry demand and a reduction in industrial demand.
In the second quarter of 2025, the platinum market was close to equilibrium. Demand during the quarter was influenced by the outflow of metal from the warehouses of the Chicago Mercantile Exchange (CME), as concerns about tariffs eased. This happened despite the fact that the total supply decreased by 4% year-on-year, mainly due to a decrease in primary production (mining).
A year earlier, the second quarter was marked by the sale of work-in-progress stocks, which was not observed in April-June of this year.
The flooding and some operational problems of early 2025 have spilled over into the second quarter. The growth in secondary supply was not enough to offset this decline.
The increase in platinum consumption by jewelers more than compensated for the decline in demand in automotive production, while industrial demand fell by 24% compared to the second quarter of 2024 due to the lack of new LCD production facilities.
SUPPLY The initial supply of platinum decreased by 6% compared to the second quarter of the previous year due to lower production in South Africa and Russia.
After flooding and processing restrictions in the first quarter of 2025, shipments from South Africa recovered significantly, increasing by 48%. However, production in the second quarter of 2025 decreased by 6% year-on-year to 1,054 thousand ounces, primarily due to depletion of stocks of semi-finished products at Valterra Platinum, which contributed to an increase in the production of refined products in 2024.
Shipments from Russia fell by 14% compared to the first quarter to 155 thousand ounces, reflecting a decrease in production and an increase in stocks of semi-finished products from Norilsk Nickel.
"Due to the withdrawal of key Western suppliers of mining equipment from Russia, Norilsk Nickel is switching to alternative equipment, which affected production during the quarter," WPIC noted.
Production in Zimbabwe increased to 137,000 ounces, which is a historic quarterly high. The growth was driven by the expansion of the smelter's capacity at Zimplats, which made it possible to use the reserves of raw materials accumulated during its commissioning.
Production in North America decreased by 4%. Reduction of production at Sibanye-Stillwater enterprises in the USA