Skip to main content

Lower platinum surplus expected in 2019

There will be a platinum surplus will be 10% lower in 2019 compared tot his year, reveals the The World Platinum Investment Council WPIC. The surplus will be approximately 455 koz, the organisation writes in its latest Platinum Quarterly.

The surplus of platinum will be lower next year because of a recent a 1.6% increase in supply and a 2.4% increase in demand. Recycling platinum supply growth will remain at 1% year-on-year in 2019, WPIC reports. This is mostly due to additional autocatalyst supply, which is believed to offset ‘weaker’ jewellery recycling.
Automotive demand is predicted to remain on its downward trajectory but at a ‘slower rate’. Also, the automotive platinum demand forecast for 2019 indicates ‘no significant substitution’ by platinum for palladium in gasoline auto-catalysts.
However, analysts point out that palladium’s price premium is exceeding US$ 300/oz. They therefore argue that automakers will consider a ‘partial switch’ from palladium to platinum. The tech development and certification costs ‘are probably more than overcome by the current palladium price premium over platinum’, analysts observe.
WPIC ceo Paul Wilson comments: ‘This has been a tough year for platinum. But 2019 looks encouraging based on continued demand growth for platinum in industrial and a rebound in investment.’ He is confident that the year ahead will hold promising developments. And he adds: ‘We believe more ETF investors find platinum’s widening price discount to palladium and rhodium interesting.’

Would you like to share any interesting developments or article ideas with us? Don't hesitate to contact us.

You might find this interesting too

CMC constructing new micro-mill in Arizona
Markets struggling as economies contract

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe now and get a full year for just €136 (normal rate is €170) Subscribe
Share your shear stories and win a GoPro!

It’s safe to say that scrap shears are the pillars of the recycling industry. But which configurations are the future? Take part in our tech survey and get a shot at winning a cool GoPro camera!

Thousands of scrap shears are driving recycling businesses all over the world. When it comes to different types, an operator may opt for maximum tonnage or flexibility, such as a mobile set-up. An integrated baling system is also gaining popularity. Ultimately, there is no wrong or right shear; it comes down to how you’re going to use it.

Our survey is meant to map the wants and needs of today’s dynamic recycling industry. Voice your opinion here and, who knows, you may be able to capture your recycling facility in action in HD.