The global platinum market expects a deficit of 303 thousand ounces (9.4 tons) in 2023 due to increased demand for the metal from the industry, according to the World Platinum Investment Council (WPIC).
“Shortage expected as global demand for platinum in 2023 will increase by 19% (to 7.770 million ounces), while supply will increase by only 2% (to 7.466 million ounces),” the WPIC report says.
B As one of the reasons for the increased demand in 2023, WPIC experts point to a 10% increase in industrial consumption of platinum to 2.316 million ounces, which could be the second largest annual consumption of the metal on record.
Platinum use in the automotive industry will grow against the background of growth in car production and tightening environmental requirements for the purity of exhaust gases.
“Automotive demand is expected to grow in 2023 in the same way as in 2022, when it showed an increase of 11 % to 3,288 thousand ounces,” explained in dated 4.
Analysts also note increased demand for platinum from glass manufacturers.
“With expected capacity expansion and continued strong demand in China, as well as fiberglass plant projects in Egypt, demand in this industry is expected to jump by 52% to 481 thousand ounces,” the report adds.
Increased demand for platinum is also expected in chemical (+6%, 39 thousand ounces) and medical (+3%, 7 koz) sectors.
“The significant economic challenges experienced during 2022 are expected to continue into 2023, but the platinum market is forecast to be tight after two consecutive years of significant surplus,” WPIC CEO Trevor Raymond was quoted as saying.
WPIC was established in November 2014 by six leading platinum producers: Anglo American Platinum, Aquarius Platinum, Impala Platinum Holdings, Lonmin , Northam Platinum and Royal Bafokeng Platinum to attract investment to the industry, jointly finance and develop new products, explore the market and share information.
