WPIC Predicts Platinum Deficit to Surpass Expectations in 2024 Due to Decreased Supply

The World Platinum Investment Council (WPIC) has announced that the global platinum deficit in 2024 will be deeper than previously expected, citing lower supply from mines in South Africa and Russia. The deficit is projected to be 476,000 troy ounces, smaller than 2023’s deficit of 851,000 ounces due to a 5% fall in demand.

Edward Sterck, head of research at WPIC, highlighted the focus on supply, which was the second lowest in the first quarter of 2024 and is forecasted to be near the record low of 2020 for the full year. Production from South African mines is expected to decrease by 2% this year, while supply from Russia will fall by 9% to a multi-decade low due to smelter maintenance and ongoing damage from Western sanctions.

Demand for platinum, used in catalytic converters to reduce emissions from vehicle exhaust systems, is expected to fall by 5% this year to 7.587 million ounces. However, demand from the auto sector is set to increase by 2% due to various factors including slower consumer demand for battery electric vehicles and stricter emissions legislation.

To cover the deficit, above-ground stocks are projected to fall by 12%, following a 17% drop in 2023. The WPIC’s data from consultancy Metals Focus provides a comprehensive overview of the supply and demand dynamics in the platinum market for the years 2020-2024.