1 October 2022: Above ground stocks are not seen as a major headwind to platinum prices as deficits loom: We are forecasting the platinum market to enter sustained deficits from 2023. Unlike palladium in the 2010’s, the platinum price is unlikely to be constrained by significant above ground inventories as there is no equivalent to the Russian palladium inventory, and what above ground platinum stocks exist are either mostly depleted, increasingly price sensitive, or geographically constrained to China. China’s excess platinum imports has created tight physical market conditions, which are illustrated in high lease rates; something that was not true of palladium when it entered sustained deficits.
Platinum Perspectives
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