Demand for platinum strengthened despite pandemic

While the COVID-19 pandemic negatively impacted the world economy on an unparalleled scale, investment demand for platinum strengthened in Q2 2020 ─ as the combination of increased global risk and monetary and fiscal policy responses to the crisis boosted the appeal of precious metals, including platinum.
The World Platinum Investment Council (WPIC) reports a revised 2020 forecast that has moved the platinum market into an annual deficit of -336 koz compared to the prior estimate of a +247 koz surplus.
Total platinum supply in 2020 is now forecast to fall by 14% (-1,159 koz) to 7,102 koz and reflects a 15% (-910 koz) decline in refined production and a 12% (-250 koz) decline in recycling supply.
Total platinum demand in 2020 is forecast to be 7,438 koz, 11% (-948 koz) lower than in 2019 due to lower demand from all four demand segments: automotive (-464 koz), jewellery (-287 koz), industrial (-5 koz) and investment (-192 koz).
Investment demand is forecast to be 1,060 koz, 15% lower than in 2019 but 455 koz higher than previously forecast for the year. Indeed, heightened global risk is expected to continue to drive investor demand for hard assets, with bar and coin demand forecast to grow by 113% to 600 koz.