"Throughout most of 2025, the supply & demand landscape for platinum has shifted significantly. Years of low prices placed considerable pressure on the mining sector, forcing companies to cut output, delay investments, or shut down operations with low profit margins. This led to a tightening of supply just as inventories declined after nearly three consecutive years of being drawn down by automakers to cover shortages."
"This subdued phase stemmed from several factors, including large inventories accumulated by automakers after COVID, persistently high interest rates, concerns over a global economic slowdown, a lackluster Chinese market, continuous ETF outflows, and capital flows shifting in favour of gold. Unlike gold and silver, platinum is not only a precious metal but also carries the characteristics of an industrial metal, making it sensitive to economic growth and technological trends."
Platinum rose almost 90% from an 885 USD/oz low in early Q2 after nearly three years of sideways movement. Large automaker inventories from COVID, high interest rates, economic slowdown concerns, a weak Chinese market, ETF outflows, and capital flows favoring gold suppressed prices earlier. Platinum combines precious and industrial metal properties, driving sensitivity to economic growth and technology. Major uses include exhaust catalysts, petrochemicals, fuel cells, and hydrogen electrolysis. Supply is highly concentrated—about 74% from South Africa—making markets vulnerable to disruptions. Low prices led miners to cut output and delay investment, tightening supply as inventories were drawn down and demand recovered.
#platinum #supply-tightening #automotive-catalysts #south-africa-mining #precious-and-industrial-metals
Read at London Business News | Londonlovesbusiness.com
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