World Platinum body rounds-up demand segment

World Platinum body rounds-up demand segmentAutomotive demand resilient in face of headwinds from US-Iran conflict and China weakness:Oil-price volatility and wider inflationary pressures associated with the US-Iran conflict have contributed to a lowering of expected light-duty vehicle (LDV) production which is now projected to decline by 1% year-on-year in 2026, with the contraction concentrated on catalysed vehicles. Consequently, the 2026 outlook for automotive demand for platinum has weakened, although trends are increasingly differentiated by region. China and, to a lesser extent, Europe account for much of the downside, while North America and India provide partial offsets through hybridisation, consumer preference for larger vehicles containing higher platinum loadings and stronger commercial-vehicle production.

As a result, global automotive platinum demand is forecast to fall by 4% year-on-year (-136 koz) to 2,904 koz, a relatively modest (-2%, -55 koz) downgrade on our previous forecast.

Higher precious metals prices and cost of living concerns continue to impact jewellery demand:
In full year 2026, platinum jewellery demand is forecast to decline by 15% year-on-year to 1,883 koz. The contraction is concentrated in China, where the reversal of last year’s inventory build, weak consumer demand and a renewed trade preference for gold are expected to drive a sharp fall in fabrication. Japan and India are also forecast to weaken as higher platinum prices and softer underlying demand reduce consumption. By contrast, Europe and North America remain comparatively resilient, supported by bridal demand and platinum’s still-substantial discount to gold.
Forecast for industrial demand growth upgraded on AI-related glass and electrical applications:
In full year 2026, a 5% (+119 koz) year-on-year increase in industrial demand to 2,385 koz is forecast, an uplift of 7% (+147 koz) from our previous forecast as AI applications boost both glass and electrical demand.
Year-on-year growth in glass demand (+23%,+98 koz); chemical demand (+9%,+50 koz); medical demand (+4%,+11 koz); electrical demand (+19%,+19 koz); and hydrogen demand (+8%,+6 koz) will more than offset lower petroleum demand (-28%,-50 koz). The latter is being negatively impacted by the ongoing disruption to shipping in the Strait of Hormuz, while Russia’s refining sector is under pressure due to drone attacks by Ukraine.

Headwinds for precious metals markets affect platinum investment demand:
The geopolitical and macroeconomic landscape hampered platinum and the broader precious metals complex in Q2’26, as investors saw prices decline amid expectations of a higher interest rate environment. This manifested itself in 234 koz of ETF liquidations and a significant year-on-year drop in bar and coin demand (-71%, -91 koz). Overall, the quarter saw net disinvestment of 121 koz.
The full year 2026 forecast is for net disinvestment of 83 koz. While ETF inflows are forecast for the second half of the year, these will only partially offset the substantive liquidations experienced during the first six months of 2026, resulting in a forecast net outflow from ETFs of 389 koz for the full year. Similarly, exchange stocks are expected to unwind by 112 koz in full year 2026, reflecting a partial reversal of last year’s sharp stock build as tariff fears recede. Meanwhile, platinum bar and coin investment is forecast to fall by 22% (-89 koz) to 313 koz in full year 2026, with some recovery expected in most markets.