Platinum shows small deficit amid strong demand

For the fourth consecutive quarter, platinum posted a small deficit in Q1 2021 (-19 koz), as strong industrial, automotive and jewellery demand and sustained investment demand for platinum outstripped constrained supply.
As the global economy continued to recover, underpinned by widespread stimulus measures, Q1’21 saw demand for platinum increase by 26% (+405 koz) year-on-year to 1,969 koz.
Meanwhile, following the effects of operational shutdowns and COVID restrictions in 2020, greater output from South Africa, an increase from Russia and growth in recycling saw total supply growing 11% (+187 koz) to 1,950 koz in Q1’21.
While total supply is forecast to rise 16% to 7,883 koz in 2021, this is still some way off levels seen pre-pandemic (8,219 koz in 2019).
With demand for platinum expected to increase by 5% (+378 koz) to 8,041 koz, 2021 is set to generate a deficit for the third year running of -158 koz.