This year, the platinum market is under stress with supply stagnant and demand expected to increase by 27%. This leaves a deficit of over one million ounces of this precious metal.

Platinum is used in the manufacture of catalytic converters to fix greenhouse gases. Market tension is reducing inventories, concentrated in China, to a level equivalent to five months of global demand according to the World Platinum Investment Council (WPIC). Platinum is part of the precious metal family, along with gold, silver, and palladium. WPIC said in its latest quarterly report that platinum will record a deficit of 1 million ounces (one ounce = 31.1 grams) “due to strong demand growth in the automotive and industrial sectors and the stagnation of supply

WPIC specified that this is “the largest deficit ever recorded, both in terms of absolute ounces and as a percentage of annual demand.” Total supply is expected to remain stable in 2023, compared to 2022, at 7.224 million ounces (-31,000 ounces), while demand is expected to increase significantly by 27% to 8.23 million ounces (+1.74 million ounces)