Platinum market heading for most significant surplus in years, WPIC states

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LONDON– The World Platinum Investment

Council (WPIC) stated on Wednesday the international platinum market

would see a much bigger surplus this year than it formerly

projection and another huge oversupply in2022

Platinum is utilized by car manufacturers to reduce the effects of damaging

engine emissions and by jewelry experts, markets such as

glassmakers and for financial investment. Surpluses suggest lower costs and

deficits greater costs.

The WPIC, which was established by platinum mining business and

utilizes information from specialists Metals Focus and SFA (Oxford), stated


the approximately 8 million tonne a year platinum market would be

oversupplied by769, 000 ounces this year– the most considering that its

information starts in2013– and 637, 000 ounces in2022

In September, it forecasted a surplus of190, 000 ounces in

2021 In May, it anticipated a deficit.

In the 3rd quarter of this year alone, the platinum market

was oversupplied by592,000 ounces, the greatest quarterly

surplus considering that a minimum of2013.

Supply from South Africa has actually increased as stock that

developed throughout a smelter blackout is processed faster than

anticipated, the WPIC stated.

Meanwhile, need from car manufacturers fell as a chip scarcity

required them to cut production and stockpiles kept in exchange

vaults in New York and for financiers in exchange traded funds

(ETFs) diminished.

The WPIC anticipated platinum supply would stay high next

year, however its head of research study Trevor Raymond stated production of

the metal need to fall in2022 or 2023 after the built-up

stocks in South Africa are invested.

The WPIC stated next year it anticipated need from car manufacturers

and financiers in platinum bars and coins to increase however for

market, ETFs and jewelry experts to desire less platinum.

Platinum rates increased to a 6-1/2 year high of

$ 1,33650 an ounce in February however have actually considering that drooped to around

$ 1,000

Following are supply and need numbers and contrasts.


20202021 f2022 f2021 f/2022 f/

20202021 f




Total mining supply 4,906 6,137 6,20325%1%

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Recycling 1,916 1,977 2,032 3%3%

TOTAL SUPPLY 6,821 8,114 8,23519%1%


Automotive 2,365 2,704 3,23714%20%

Jewellery 1,820 1,914 1,890 5%-1%

Industrial 1, 987 2,501 2,16926%-13%

— of which chemical58564960811%-6%

— petroleum10917919465%8%

— electrical130138138 6%0%

— glass42372634872%-52%

— medical239247254 4%3%

— other50156162712%12%

Investment 1,554225302-86%34 %

— bars and coins586365402-38%10%

— modification in ETFs509-4050

— exchange stocks458-100-150

TOTAL DEMAND 7,726 7,345 7,598 -5 %3%


Above ground stocks 2,650 3,419 4,05629 %19 %


Q3 2020Q2 2021 Q32021


Total mining supply 1,384 1,587 1,569


TOTAL SUPPLY 1,911 2,081 2,049


Automotive 638653617



— of which chemical124214157

— petroleum214545

— electrical333536

— glass131169164

— medical605962

— other137141 139

Investment962189 -246

— bars and coins97109122

— modification in ETFs52331-195

— exchange stocks34249-173

TOTAL DEMAND 2,615 1,9671,457


Source: World Platinum Investment Council, Platinum

Quarterly Q32021

( Reporting by Peter Hobson; modifying by David Evans)

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