Mined platinum supply set to fall in 2025, says WPIC

MINED platinum supply is forecast to fall two percent next year owing to continued restructuring by producers, said the World Platinum Investment Council (WPIC).Commenting in its third quarter supply and demand report, in which a third successive supply deficit was forecast for the metal in 2025, the council said newly mined production was set to remain flat this year at about 5.68 million ounces.There was a seven percent increase in third quarter production to 1.48 million oz, but this outcome was “flattered” by the release of inventories from mining companies, the WPIC said. Newly mined production in 2025 would total about 5.55 million oz.Commenting on next year’s lower supply, the WPIC’s CEO Trevor Raymond said: “Ongoing headwinds present downside risks to supply into next year, especially as miners reassess production plans and restructure operations to manage the negative impact of the platinum group metals’ basket price on mining sustainability”.Amid a forecast of a two percent increase in automotive platinum demand, reaching 3,25 million oz 2025 – the highest level since 2017 – the WPIC comes out with a supply deficit for 2025 in platinum of 539,000 oz. This is the council’s first forecast for 2025.A number of other supply and demand factors feed into this estimate including supply from recycling, up one percent next year, and steady improvements in jewellery demand. Industrial demand for platinum is expected to fall next year, however.Demand from investment such as bars and coins as well as exchange traded funds which are backed by physical metal, is expected to rise significantly next year, up seven percent to 420,000 oz.Raymond said that the slowdown in battery electric vehicle sales, which was “contrary to expectations” would result in “sustained” automotive demand for platinum over a longer period. “All the while, platinum demand is bolstered in this sector by stricter emissions legislation, an increase in hybrid vehicles that contain internal combustion engines, and the growth in annual platinum for palladium substitution,” said Raymond.Sibanye-Stillwater announced major cuts to production of palladium and platinum at its Stillwater facilities in the US. Other producers have also trimmed production but both CEOs of Impala Platinum and Northam Platinum said while substantial cuts were not possible (as cost structures had to be protected) substantial new production was unlikely to materialise.The prices of the overall platinum group metal basket appears to have bottomed out this year with some analysts expecting a recovery.The palladium price is about six percent higher over the past three months while platinum is flat over the same period, but two percent lower year-to-date.The post Mined platinum supply set to fall in 2025, says WPIC appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com