Global Platinum demand plunges to 1,785 kilo ounce in Q3
LONDON (Scrap Register): Global platinum demand plunged 8% year-on-year to 1,785 kilo ounce during the third quarter of this year as industrial demand in particular dropped significantly, mostly owing to lower capacity increases in the glass sector and lower net requirements in the petroleum sector due to refinery closures in Japan.
Jewellery demand dipped 4 percent as Chinese fabricator demand continued to decline and outweighed gains in most other regions.
Overall investment demand was negative for the first time in two years as outflows from ETFs and exchange stocks outweighed bar and coin purchases.
However, automotive demand grew 1% to 785 koz, helped by higher demand in heavy-duty vehicles.
Net platinum requirements for industrial applications decreased by 16% year-on-year (-75 koz) to 385 koz in Q3’17, primarily owing to weaker demand for glass fabrication (-40 koz) and petroleum refining (-30 koz), whilst chemical demand also fell slightly (-5 koz).
The ongoing recovery and recycling of platinum from closed refinery units in Japan returned metal to market during the third quarter which, along with slower capacity expansion in China, lowered new metal requirements in the petroleum sector.
Platinum purchases by glass fabricators also declined versus Q3’16, owing to the relatively low number of new facilities scheduled to start up in the second half of this year compared to H2’16.