MUMBAI (Scrap Register): Indian Platinium jewellery demand is projected to continue its rapid growth with another double-digit gain in 2018, since consumers are expected to have adjusted to the Goods and Services Tax and PGI is continuing to support market development, according to World Platinum Investment Council.
The strong growth seen in Western Europe and the US this year is forecast to continue into the next, but Japan is expected to see a decline in demand. Net platinum demand for industrial end-uses is forecast to rise by 9% (+150 kilo ounce) to 1,790 kilo ounce next year, almost fully recovering to 2016 demand levels following the decline this year.
New metal requirements are anticipated to rebound in the petroleum (+90 kilo ounce) and glass (+25 kilo ounce) sectors, whilst growth is also predicted for chemical catalysis (+15 kilo ounce) and other end-uses (+25 kilo ounce).
Fewer refining capacity reductions in Japan and less recycled platinum being returned to market are likely to lift metal purchases by the petroleum industry, whilst the start-up of new LCD substrate plants in China should increase demand for platinum in glass manufacturing.
Greater silicone production and higher fuel cell demand are expected to boost requirements for chemical and other end-uses, respectively.
Total investment demand is forecast to be 250 kilo ounce in 2018. Coin purchases are predicted to remain at a similar level to 2017, but bar purchases, which are dominated by Japanese investors, are likely to be somewhat lower than this year because the yen is forecast to weaken, lifting the yen price of platinum, which will discourage purchases. ETF demand is expected to have another positive year.