The Strategist

Analysts expect biggest platinum deficit in the last 50 years



05/16/2023 - 09:14



According to economists, the platinum market may have its largest shortfall in the previous 50 years.



James St. John
James St. John
The World Platinum Investment Council's (WPIC) forecasts that the platinum market may have its worst shortfall since the 1970s, the Financial Times writes. It mentions production issues in South Africa brought on by power constraints, acceleration of chemical and glass production in China, and growing usage of platinum as a substitute for palladium in automobiles.

In 2023, the WPIC forecasts a shortfall of 983,000 ounces of platinum, a 77% rise from the forecast made three months prior. According to WPIC Research Director Edward Sterck, the ounce shortfall would be the most since the 1970s, as reported by the FT.

WPIC researchers predict that the demand for platinum will increase worldwide by 28% this year to 8.2 million ounces. The need for the metal in the industrial and automotive sectors, as well as stronger investment demand in the first quarter, all have an impact on the growth.

source: ft.com

 




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