‘World platinum demand will outstrip supply’

JOHANNESBURG – THE WORLD Platinum Investment Council (WPIC) yesterday projected an annual deficit of the metal this year and next year, with demand expected to outstrip supply on the back of ongoing processing disruptions in South Africa and mine closures due to the Covid-19 pandemic.

The WPIC said it expected the market to shift to a record annual deficit of 1.2 million ounces this year, compared with a prior estimate of 336 000 ounces only two months ago.

The council said the deficit would be -224 000 ounces for 2021.

“The -224 000 ounce deficit reflects a 17 percent pick-up in supply and a 2 percent increase in demand, with the latter largely due to lower, albeit still well above the historic trend, investment demand,” the report said.

The deficit comes as total platinum supply in 2020 is expected to fall by 18 percent to 6.73 million ounces, due mainly to mine supply curtailment and a 5 percent decline in demand.