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The World Platinum Investment Council (WPIC) forecasts a record 1-million-oz. platinum deficit for 2023, both in absolute ounces and as a percentage of annual demand, amid a surge in automotive and industrial demand and stagnant supply.

In its Platinum Quarterly report released this week, the WPIC highlights a booming demand for the metal, slated to rocket by 27%, hitting 8.23 million ounces. This overshadows a barely changing supply forecast, stagnating at 7.22 million oz., just 31,000 oz. above last year’s figures.

“These statistics spotlight a market under intense pressure, with potential ramifications for investors and industries dependent on this precious metal,” WPIC research director Ed Sterck tells The Northern Miner in an interview (see attached video below

The WPIC forecasts a record platinum deficit in 2023. Credit: World Platinum Investment Council

The recovering automotive sector drives this demand upswing, with Sterck’s data projecting a 13% (or 381,000 oz.) increase in 2023. Ramped-up vehicle production rates underpin this surge, with forecasts indicating a 6% and 7% growth for light-duty and heavy-duty vehicle production, respectively.

Sterck highlighted the ongoing platinum for palladium substitution in gasoline vehicles, an adjustment dictated mainly by the existing price differential between the two materials. On the industrial front, significant capacity additions in the chemical and glass sectors are influencing the demand surge.

The Chinese government has been implementing stricter emission standards from July 1, further bolstering platinum demand as industries integrate more platinum group metal (PGM) coated particulate filter systems. This trend is set to elevate the global platinum automotive demand to an anticipated 3.28 million ounces.

Simultaneously, the industrial sector is smashing records, with predictions setting the demand at 2.67 million oz., a notable 14% year-on-year increase. This rise mainly stems from substantial capacity expansions in the glass and chemical sectors, seeing growth rates of 50% (251,000 oz.) and 12% (82,000 oz.), respectively. In contrast, the electrical and petroleum segments anticipate a dip in demand, slated to fall by 8% (9,000 oz.) and 11% (22,000 oz.).

Investment circles also embrace the platinum trend, with predictions setting the net investment demand at 386,000 oz. for 2023. Platinum ETF holdings experienced a significant surge, growing by 155,000 oz. in the June quarter, marking the most substantial quarterly increase since the third quarter of 2020.

Stagnant supply

However, the supply side fails to mirror this burgeoning demand, notes Sterck.

Refined mine production of platinum has plummeted by 4% or 65,000 oz. over last year, settling at 1.46 million oz. in Q2. South Africa, which contributes 75% of global supply, saw a 9% dip in output year-on-year, a decrease linked to ongoing maintenance activities and relentless power disruptions due to the

Metals in short supply

John Feneck, president of Feneck Consulting, argued copper is set up for one of the biggest rallies in history, citing a mid-year Goldman Sachs report anticipating a dramatic 80% increase in copper demand by 2025.

Despite copper’s vital role in the energy transition, its price has been down recently, which the speakers interpret as a buying opportunity.

Meanwhile, Michael Konnert, the co-founder and managing partner of Inventa Capital, holds a bullish view on another critical metal — nickel — likening its potential growth trajectory to the one previously seen in the lithium market over the past decade or so.

Nickel, a significant component in batteries, appears to be undervalued, according to Konnert, who noted several potential near-term challenges for the metal.

These include an upcoming election next year in Indonesia, a significant contributor to global nickel production. He sees current pricing levels of nickel juniors as a buying opportunity, and believes some could see significant investment from larger companies in the sector following on Glencore’s (LSE: GLEN) recent purchase of equity positions in Stillwater Critical Metals (TSXV: PGE; US-OTC: PGEZF) and Palladium One Mining (TSXV: PDM; US-OTC: NKORF).

Now let me think who has a sheet load of both these metals...........oh yes, that would be us! ;-)

Condolences and thoughts to you Les................

Or dematerialised in your case..........

Bfl last to end of the year nudge nudge wink wink:-) besides that money set aside for higher taxes will be back in play Goodnight

ps Audrey is long time whiner and bitter ex holder.........move on deary life is too short x

Wolfie, of course you are on every AIM BB? being a shareholder in all of them no doubt lol. As you say same Shyte from Same puerile person

Wolfie deary, can you come up with posts that are not quite so puerile? Or at least if you "trying" to have a go at me up your game a bit perhaps? The main point being I am real, a real shareholder not a fantasy one. Did nobody tell you that in this game unlike your football one you actually have to own shares to participate?

B1II, understand the extraction costs but there is simply nothing to say it is not favourable now and doubt it very much will be in the future. Yes, of course price has dropped in last year but that is likely cyclic and due to economic factors in the world. Will it rise again, imo yes, and could be sharper than previous.

Plus of course we have one sheet load of Copper and Nickel which if anything are more of a jewel in the basket for us. Copper up on year and forecast to rise rapidly as is Nickel. So all in all basket to extraction prices I reckon we will be fine thanks.

In this type of Sale the "experts" bash, haggle etc every possible facet outcome to come to an agreed price. That also takes time and as always compromise on both sides.

As for WK, yes has been developed, and very well at that! However, it is the size of it............it has done it's job which is to keep the company debt free, cash in the bank, on friendly local terms, showing our green credentials............all for the final stated goal of an /Assets Sale and personally think the lot will go............now whether ALL proceeds will be distributed to shareholders is another point.......if EUA 2 goes ahead (licences elsewhere/different countries?) it is very likely some will be held back to fund it.....could it be a cash and shares deal for shareholders in Eua2? Might not suit some but you can always sell your new shares..........trust the BOD and if you can't stand the heat of holding then get out of the proverbial kitchen and put your money somewhere you feel more comfortable with. GL

Fr. Jack, bit patronising to genuine holders perhaps? Think all us sensible, grown up holders and investors know all about Risk to Reward thanks.......... imo we do have visibility of the value of the company via what has already been published Re the resources, add in DFS etc..............granted not exact value, but the value of the Resources "that we already know about" are all too obvious. That is why I am invested anyway and the BOD stated Aim of an Asset sale as the priority.

There is a lot more "obvious" value in Eua than I would dare say at least 90% of other Aim companies........it really is just a question of the "war/geopolitical" reduction. However it will be somewhat more than 3p!

BobbyBingo imo WK really is too small to interest a big company as a stand alone sale and really doesn't make commercial sense for anyone to sell/buy as such.

One point being missed is how small this concentrate, and indeed WK as a whole is, compared to the overall Sale of Assets (MT etc). It is a nice little sweetener with room for expansion but in the scale of everything perhaps 5% (guess), or less, of bigger picture. I personally think bit of house keeping on this, and other things, tidying up for the Sale..........Just an opinion..........

Bfl, unlike yourself who embarrasses themselves with every post...........

Gee Tygra, you still holding then? After all your venomous attacks on the Company and BOD one would have thought sure sign of madness to be holding shares in such a company, No? Or, could it just be more disgruntled ravings from a AIM punter bought in too high, whining to high heaven about their own investments decisions while blaming everybody apart from themselves for being underwater? Myabe just don't have the bolls to sell, admit to yourself you got it wrong, and move on to try to recover losses? Would love to play some of the chumps on here at Poker, forever on Tilt lol

Ha ha, since when do you work? oh, now I am in the South West am I? Got some sort of Geo tag on me looooooooool Oh how the story grows lol more, more!

He he wolfie, keep going, I am Spartacus, didn't you know? loooooool Carry on, it is so amusing...........got a Surname for me next? loooooooooooooooool

Bfl aligning yourself with the lambsie of tit street, seriously? loooooool I would say don't lose what little credibility you have here siding with the well known fantasist but probably bit late for that no? lambsie dear has a long history of making up stories......got serious problems as many others have alluded to............sad, lonely life so spends it on a BB where he is not invested (seriously doubt EVER owed any share) cosying up to whichever other neghead or sad loser suits it's purposes........oh, and I have been living rent free dancing around in it's empty bounce for quite a while now. ain't that right wolfie dear lol xx

Treadinaturd, yep I did, and if doesn't come this year (I think it will) then I will say it again in 2024! That is because I am an Investor, not gambler. I believe in my investment and the Company. I fully understand that Covid and a Mad man's War are not the fault of the Company. But above I personally believe that a Sale is inevitable and the BOD's stated Aim for quite some time has been this. All pretty simple really............but hey, understand if the likes of you find it hard to understand............but actually being invested instead of a sad, no life, agitator is likely the difference don't you think?

Your moniker truthfactory........that is a blatant lie! lol

I thought the BOD told us the reason for no concentrate being produced at WK since end of 2022? That being the focus has been on the SALE PROCESS. Could it be perhaps the buyer has their own good reason for that? Selling the stock piled concentrate we have now...........why, one might think now? House keeping going on? Perhaps that Sale process is further along than some want to believe? End of year offer on table imo ;-)

Lambsie, oops sorry wolfie, or hairy doggie or, or.......gave me a belly laugh claiming about my "supposed" monikers when all lth know yours lamo! I won my own bet about how long the it would take you to pop up lol. After all the never invested, like you, can't stay away for long. How is the blow up girl friend, repaired yet? how about fantasy gold friends, what a knob! Off out into nice sunshine as t=it is obviously day release time on here. GL all lth, Glory to Ukraine!

Seriously Frances, oops Tiffers, you think I am those people? loooooooooooooooooooooooooooool you think I am IKN? wow! seriously deluded lmao