Title: Platinum deficit expected to exceed 1 million ounces in 2023
Introduction: According to a recent report from the World Platinum Investment Council (WPIC), the platinum deficit is expected to reach over one million ounces in 2023, representing a significant increase from the previously announced deficit. This situation is mainly due to growing demand, particularly in the automotive sector, combined with relatively low supply. Let’s take a closer look at the reasons for this prediction and the implications for the platinum industry.
Growing demand in the automotive sector: The WPIC report highlights that demand for platinum is expected to increase by 27% in 2023, mainly due to increased vehicle production. This increase in demand is forecast at 13% year-over-year, while industrial demand is expected to reach a record high of 2.66 million ounces this year. This growth is supported by constantly increasing automotive demand, particularly for reduced-emission vehicles.
The impact of South Africa’s electricity problems: The report also highlights the relative weakness of platinum supply, which remained stable compared to the previous year. This situation is mainly attributed to electricity problems in South Africa, which have affected the activity of platinum producers in the country. There was a 4% decline in refined mining production in the second quarter, despite increases in Russia and North America.
The consequences of the platinum deficit: The deficit announced in the WPIC report has important implications for the platinum industry. First, platinum prices are likely to rise as demand outstrips supply. This may impact automakers and other industries that use platinum in their production processes. Additionally, it highlights the growing importance of platinum recycling to reduce reliance on new mining sources.
Conclusion: The projected platinum deficit for the year 2023 highlights growing demand in the automotive sector and relatively low supply. This situation may impact platinum prices and highlights the importance of recycling to meet growing demand. It will be interesting to follow this trend in the future and see how the platinum industry adapts to this situation.