Page 24 - Bullion World Volume 4 Issue 7 January 2024
P. 24

Bullion World | Volume 4 | Issue 7 | July 2024


              Demand for platinum for use in Fuel cell electric   A sustained market deficit
              vehicle (FCEV) and stationary hydrogen fuel cells   Constrained supply and healthy demand will keep
              will outweigh demand losses from declining ICE     the platinum market undersupplied over the coming
              vehicles.                                          years. We estimate the market deficit will widen
                                                                 from 518koz to above 650koz in 2024 and 2025, a
           •   The World Platinum Investment Council estimates   shortfall equal to nearly 8% of annual demand. The
              platinum demand will increase from 40koz in 2023   widening deficit will gradually eat into above-ground
              to 875koz by 2030 – approximately 50% of annual    inventories, which currently hold enough to meet
              demand growth. This will contribute more than 10%   about 47% of annual demand.
              to total platinum demand.
                                                              •   While the market takes time to clear built-up
                                                                 stock, the structural deficit should help reverse the
                                                                 downtrend in platinum prices.

                                      Platinum above-ground stocks


































                                          Platinum market balance


































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