Heraeus highlights increasing platinum demand from the pharmaceutical sector
Mon Feb 10 2025
Global technology group Heraeus says in its Precious Appraisal report that pharmaceutical platinum demand is expected to rise steadily moving forward. It explains that, with the World Health Organisation estimating that new cancer cases could rise by 50% by 2040, platinum-based drugs will be pivotal to efficient and effective treatments, propping up this rising pharmaceutical platinum demand.
German-headquartered Heraeus has been producing and selling anti-cancer active pharmaceutical ingredients (APIs) since the 1970s, and in 2021 invested considerably into platinum API production in the country.
Platinum plays a role in the production and effectiveness of APIs. An API is the biologically active component of a drug or the primary ingredient. APIs are used to diagnose, cure, treat or prevent disease or to affect the structure or function of the body. It is estimated that platinum-derived APIs (platins) are used to treat almost half of people undergoing chemotherapy for cancer, Heraeus points out.
Platinum is the main PGM used, but the others also present options.
Platinum is the primary metal used in cancer treatments, but owing to its suitable characteristics, ruthenium is currently being evaluated for future cancer treatments.
There is also ongoing research into palladium- and iridium-based anti-cancer drugs; however, rhodiums toxicity has been found to make it less suitable as an option.
The use of platinum per treatment is very small (about two-thousandths of an ounce). However, with millions of patients yearly, and an average of six treatment rounds per patient, platinum use does scale up.
Heraeus says the outlook is for more cases that will require platinum-based treatments.
Demand in medical applications (including pharmaceutical) is forecast to account for about 250 000 oz of platinum consumption this year, or about 3% of total yearly demand.
South African platinum production is expected to hold steady this year. An anticipated 3% year-on-year increase in overall South African platinum supply in 2025 to 3.9-million ounces is expected.
While State-owned Eskoms recent return to loadshedding has been relatively minor, it still represents a downside risk to South Africas platinum supply outlook for this year, as summer gives way to winter and electricity consumption rises, the company warns.
Heraeus says the number of central banks buying gold has reduced.
Central bank demand for gold declined by 1% year-on-year in 2024, falling below 1 050 t, according to the World Gold Council.
Heraeus says that while this appears to be relatively stable, there has been a shift in the number of central banks buying and selling gold.
In the first half of 2024, an average of 21 central banks purchased gold each month, however, in the second half of the year, with data available until November, this number had dropped to 17. Moreover, a small number of central banks accounted for the majority of demand in 2024.
The company also mentions that there are signs that inflation expectations under the Donald Trump administration have not been quelled, potentially supporting stronger demand for gold as an inflation hedge in the near to medium term.
Source: https://www.miningweekly.com/