LONDON (Scrap Register): World platinum demand is expected to jump by 9% in 2019 owing to solid investment demand that more than offsets expected demand decreases in the automotive and jewellery segments of 4% and 5% respectively, the World Platinum Investment Council (WPIC) said its latest report.
The unprecedented 855 koz of investment demand in H1’19 is driven by a surge in ETF holdings, which gained 720 koz, the report said.
In 2019, total platinum supply is forecast to increase by 4% over 2018 with increases in both mining supply and recycling. Refined production is projected to grow by 5% owing to the refining of material that built up in the processing pipeline in 2018 and expansion projects in North America.
Recycling is forecast to grow by 3% as an increase in platinum recovered from autocatalysts more than offsets a decrease in jewellery recycling due to the low platinum price.
With demand projected to increase by more than supply, the annual 2019 market balance will narrow to a surplus of 345 koz from the previously forecast surplus of 375 koz, the report said.