Platinum Quarterly today raised the predicted platinum market deficit for 2017 to 120 koz for the year. The upward revision comes after confirmation that the market ended 2016 270 koz in deficit, a deeper shortfall than previously estimated.
- 2017 will be the sixth consecutive year that global platinum consumption has outstripped supply, with total supply, from mining and recycling, this year predicted to fall by 4 per cent compared to 2016.
- There was a marked increase in the buying of platinum Exchange Traded Funds (ETFs) in the final quarter of 2016, which saw net buying 200 koz higher than in the previous quarter.
- Demand from the automotive sector defied some expectations, ending the year up 1 per cent. The report reveals that year-on-year platinum demand from the Western Europe automotive sector has been higher in every quarter since the third quarter of 2015.
- Jewellery demand in 2016 was down 11 per cent on 2015, with 2017 predicted to see demand stabilise with only a small 1 per cent decline during the year. However, the Indian market is expected to continue its strong growth with demand predicted to be up by more than 11 per cent this year.