A market-leading refiner of Platinum group metals headquartered in London yesterday revealed its new forecasts for the provision and demand of Platinum group metals, Commerzbank’s commodity analyst Carsten Fritsch notes.
Platinum faces third straight 12 months of main provide deficit
“In accordance with the forecast, the Platinum market is predicted to indicate one other appreciable provide deficit of 736 thousand ounces this 12 months. This could be the third consecutive vital provide deficit. Demand is predicted to fall by 2.6% as a result of the automotive business is prone to require much less Platinum and funding demand can also be anticipated to say no. Provide is predicted to fall by 1.3%. The primary motive for this can be a 5% drop in mine manufacturing in South Africa. This can stop a smaller provide deficit.”
“The corporate expects the Palladium market to be virtually balanced this 12 months, following a provide deficit of 501 thousand ounces within the earlier 12 months. The explanation for the vanishing provide deficit is a 6.4% decline in demand. Much like Platinum, this is because of decrease Palladium demand from the automotive business and weaker funding demand. The latter is predicted to be damaging for the primary time in three years, which might be defined by anticipated ETF outflows. Palladium provide, however, is simply anticipated to fall by 1.7%.”
“That is primarily resulting from a decline in mine manufacturing in South Africa and North America. In distinction, the recycling provide from the automotive business is predicted to extend. Different market observers such because the World Platinum Funding Council and Metals Focus, a analysis firm specialising in treasured metals, are anticipated to publish their new forecasts on Monday.”
