The global platinum market is set to experience a structural deficit for the third consecutive year, with a projected shortfall of 848,000 ounces (koz) in 2025, following a deficit of 995,000 koz in 2024. This is according to the Platinum Quarterly report for the fourth quarter of 2024, with a revised forecast for 2025 from the World Platinum Investment Council (WPIC).
By Ryan Chigoche
According to the report, the gap between supply and demand continues to widen, reinforcing concerns about long-term availability.
In 2024, the platinum market recorded a significant supply- demand imbalance, with the deficit exceeding initial forecasts by 46%. Total demand surged past 8 million ounces (Moz) for the first time since 2019, reaching 8,288 koz—a 5% increase from the previous year.
Meanwhile, total supply grew by just 3% year-on-year to 7,293 koz, still falling short of meeting growing consumption.
For 2025, demand is expected to remain high at 7,850 koz, despite a 5% decline from 2024 levels, while total supply is forecast to drop by 4% to 7,002 koz, further deepening the deficit.
These figures highlight the persistent structural imbalance, emphasizing the need for increased production or alternative solutions to stabilize the market.
Production constraints and disruptions in major mining regions continue to put downward pressure on supply, which is expected to decline further in 2025.
The projected 4% decrease underscores the ongoing challenges producers face in ramping up output. At the same time, the automotive sector remains a key driver of platinum demand, holding steady at 3,130 koz in 2024 and projected to reach 3,102 koz in 2025.
Despite the growing adoption of electric vehicles (EVs), which reduce reliance on platinum-based catalytic converters, traditional internal combustion engines still require significant amounts of the metal, sustaining its role in the industry.
Trevor Raymond, CEO of the World Platinum Investment Council, commented on these developments, stating:
“Platinum’s sustained consecutive annual deficits, almost 1 Moz in 2024, contain some investment flows related to the recent tariff-driven chaos but are largely structural in nature. Automotive demand remains steady as slower battery electric vehicle growth takes hold, and higher-for-longer internal combustion engine vehicle levels are more widely appreciated. The ongoing decline in mine supply continues, potentially accelerating as stock release benefits taper further. At the same time, the previously anticipated recovery in recycling failed to materialize in 2024. Recycling levels are at their lowest in 10 years, and growth looks set to struggle once more in 2025.”
Beyond the automotive sector, platinum jewelry demand has shown impressive growth, rising by 8% in 2024 and expected to increase by another 2% in 2025, reaching a six-year high. Strong consumer interest, particularly in Asia, has been a major contributor to this upward trend.
Similarly, investment demand has surged, climbing 77% in 2024 due to strong exchange-traded fund (ETF) inflows and heightened large-bar purchases in China. This surge in investment interest reflects growing confidence in platinum as a strategic asset, particularly during times of economic uncertainty and market volatility.
Another crucial factor shaping the market is the steady depletion of above-ground platinum stocks. In 2024, stockpiles fell by 23%, and a further 25% decline is expected in 2025, reducing inventories to 2,535 koz—less than four months’ worth of global demand.
With reserves shrinking at a rapid pace, concerns about supply shortages are becoming more pronounced, potentially driving price increases in the near future.
The continued supply shortfall, coupled with strong demand across multiple sectors, suggests that the platinum market will remain in deficit for the foreseeable future.
While automotive demand may stabilize, the sustained growth in jewelry and investment demand, combined with tightening above-ground stocks, is expected to support platinum prices and overall market stability.
As platinum remains a critical metal in industrial and investment applications, stakeholders must closely monitor supply constraints and evolving demand trends to navigate the challenges ahead.
