Page 19 - Bullion World Volume 02 Issue 02 June 2022_Neat
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Bullion World | Volume 2 | Issue 02 | June 2022
Global security concerns and
inflationary risks provide a further
incentive for investors to consider
exposure to ‘green’ platinum
Headwinds in 2022 are pointing to
a platinum market in surplus for the
second successive year – albeit
at 19 t (627 koz), 44% down from
2021. Overall, global supply is
expected to be 242 t (7,781 koz),
5% down year-on-year to below
pre-pandemic levels, while global
demand is expected to be 223 t
(7,155 koz), a modest growth of 2%.
Yet recent developments, in Platinum is used as a catalyst
particular responses to Russia’s in PEM electrolysers Picture
invasion of Ukraine, are impacting
Mr Trevor Raymond several drivers of short-term credit: Siemens
Director of Research, platinum demand growth, each one
World Platinum Investment Council
of which could drive our current semiconductor shortages and
forecast surplus to a balance or even China’s zero-COVID policy continue
a deficit. Automakers and industrial to pose challenges for automakers
users increasing near term metal as well as the 2022 automotive
stock by just one month, accelerated platinum demand growth, which
platinum substitution for palladium is nonetheless expected to rise 16
or China importing more than its per cent after a strong first quarter
platinum needs - as happened in performance. The strong rise in
2020 and 2021 - are all significant. platinum automotive demand in 2022
Even a portion of each action would of 13 t reflects two ongoing trends –
collectively easily drive a deficit. higher platinum loadings per vehicle
due to tighter emissions regulations
Last year, the platinum market and platinum for palladium
was especially impacted by a substitution in autocatalysts gaining
Fuel cell electric vehicle growth temporary supply increase due to momentum on grounds of cost and,
is being led by the heavy-duty the processing of semi-finished mine more recently, the threat of supply
segment Picture Credit: Hyundai inventory and reduced automotive disruption.
Motor Company platinum demand due to the drag on
automotive production caused by a The significant price difference
global shortage of semiconductors. between platinum and palladium
The supply boost has ended but has driven material platinum
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