The Conversation (0)
October 17, 2021
Future Metals NL ("Future Metals" or the "Company", ASX | FME) is pleased to provide an update on its admission to trading on the AIM market of the London Stock Exchange ("AIM") and its operational progress.
Highlights
- Admission to AIM
- Admission to trading on the AIM market of the London Stock Exchange expected to take place at 8:00a.m. (London time) on 21 October 2021 under trading code 'FME' ("Admission")
- Highly respected UK-based company director, Elizabeth Henson, to be appointed to the Board as an Independent Non-Executive Director on Admission
- Appointment of W H Ireland Limited ("WH Ireland") as UK Broker with effect from Admission
- Operational update
- Drilling progressing as planned at Panton, with approximately 3,000m completed to date across thirteen holes
- Samples submitted for assaying for initial ten holes drilled with results pending
- Drilling is continuing and currently targeting shallow mineralisation across the B Zone and C Zone where the Company sees potential for broad mineralisation outside of the current Panton 2.4Moz JORC Mineral Resource Estimate ("MRE") (refer Appendix One)
Admission to AIM
It is expected that the Company's ordinary shares will be admitted to trading on AIM at 8:00a.m. (London time) on 21 October 2021. On Friday, 15 October 2021 the Company published an AIM Admission Document, which will be made available on the Company's website at www.future-metals.com.au from Admission.
In conjunction with Admission, the Company has secured the appointment of a highly credentialed UK-based director to augment the Company's existing board of directors. It is proposed that Elizabeth Henson will be appointed to the Board of Future Metals with effect from Admission.
Ms Henson was formerly a senior international private tax partner of PricewaterhouseCoopers (PwC) in London, having founded and led PwC's International Wealth business. She is an experienced company director and holds a Master of Laws and Tax from Queen Mary, University of London, along with a Bachelor of Laws (LLB) and Bachelor of Art from Rhodes University, South Africa.
FME:AU
02 June
Edward Sterck: Platinum Price on the Move, Perfect Storm Coming?
Edward Sterck, director of research at the World Platinum Investment Council, reviews the organization's latest quarterly report, honing in on supply and demand dynamics.
He also touches on platinum's recent price move, highlighting its strong fundamentals.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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28 May
Platinum Price Breaks Out as Chinese Demand and Global Shortfalls Ignite Rally
The platinum price has surged over 20 percent year-to-date, propelled by a sharp rebound in Chinese demand and a tightening global supply picture that analysts say may signal a prolonged market deficit.
On May 23, platinum closed at US$1,098.40 per ounce, its highest level since May 2023, and a 22 percent increase from its year-to-date low of US$892 seen on April 8. The rally, which has accelerated in recent weeks, comes amid renewed investor interest in precious metals, stark supply-side constraints and a changing global demand profile.
China has emerged as a key force behind platinum's surge, with imports in April jumping 47 percent month-on-month to 10 metric tons, the highest in a year, according to Chinese Customs data.
“There is a lot of encouraging news coming out of China,” said Edward Sterck, director of research at the World Platinum Investment Council (WPIC), in an interview with the Investing News Network (INN).
“In the first quarter of this year alone, given the exceptionally high gold price, gold jewelry sales in China were down 32 percent year-on-year, and platinum jewelry sales were up 26 percent,” he emphasized.
Gold touched US$3,500 per ounce last month, pricing many Chinese buyers out of the market. Platinum, currently trading at a significant discount, is increasingly being seen as an attractive alternative, both for investment and jewelry.
“China’s a market that can pivot really quickly,” Sterck added, noting that platinum bars, coins and jewelry are now being marketed aggressively across social media platforms like TikTok.
This renewed Chinese interest aligns with broader structural issues in the platinum-group metals (PGMs) market, as detailed in a recent report by research firm Metals Focus. It notes that all five PGMs — platinum, palladium, rhodium, iridium and ruthenium — ended last year in physical deficit. Platinum alone saw a second consecutive year of shortfall, with Metals Focus placing total global production at 5.77 million ounces, still well below the 2010 to 2021 annual average.
Behind the deficit lies a mix of supply disruptions, weak mine productivity and building demand.
Sterck underscored the severity of the shortfall seen in Q1, saying it was the largest in six years. It was driven by flooding in South Africa, smelter outages in Zimbabwe and operational restructuring in North America.
Even though South African output rose above 4 million ounces for the first time since 2021, much of that gain was attributed to the release of built-up work-in-process inventories rather than fresh production.
The constrained supply has had ripple effects across investment channels. Platinum secondary supply — which primarily comes from recycled jewelry and autocatalysts — rose just 1 percent last year.
In Asia, jewelry recycling volumes fell, and while autocatalyst recycling improved 9 percent due to higher scrappage rates and incentives in China, it remained insufficient to close the gap.
When it comes to demand, the auto sector, traditionally the largest consumer of PGMs, saw overall fabrication demand fall 4 percent to 12.14 million ounces in 2024. This decline marked the first drop since the COVID-19 pandemic, and was largely due to a 2 percent decrease in catalyzed vehicle production amid the rise of battery electric vehicles.
Industrial demand, on the other hand, was under pressure, falling 2 percent year-on-year. The biggest hit came from a 27 percent drop in chemical applications, particularly in China’s paraxylene sector, a key component in plastic production.
Against this backdrop, speculative positions in platinum have also helped drive recent price movements.
Sterck explained that in the first quarter of 2025, a confluence of market expectations and policy shifts — particularly related to US import tariffs — created arbitrage opportunities for traders.
“There was a lot of uncertainty as to whether tariffs would apply to platinum and other PGMs,” he explained, adding that the flow of metal into the US caused strong contangos in NYMEX futures markets, boosting Q1 investment figures.
Although aboveground stocks of platinum remain elevated, they are being gradually drawn down, and continued mine cutbacks could eventually tip the market further into deficit territory.
Sterck tempered this outlook with caution: “It feels like, as that range is pinching out, we're definitely getting to a point where it seems highly likely the price will begin to reflect the underlying deficits. So we'll have to wait and see.”
Metals Focus projects an average platinum price of US$970 for 2025 — a modest increase from last year’s average — but notes that volatility could return if investor sentiment sharpens or supply disruptions worsen.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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20 May
Metals Focus: PGMs Deficits Deepen as Supply Tightens and Demand Realigns
Despite economic and geopolitical upheaval, 2024 was relatively calm for platinum-group metals (PGMs).
In its new PGMs report, research firm Metals Focus notes that all five PGMs — platinum, palladium, rhodium, iridium and ruthenium — ended 2024 in physical deficit, marking a pivotal year of stabilization and supply strain.
With tightening mine output, rising hybrid vehicle demand and industrial shifts driving ruthenium and iridium gains, 2025 is set to test the sector’s resilience amid constrained supply and cautious investor sentiment.
As the sector looks to 2025, the outlook remains constrained, but cautiously optimistic.
PGMs supply constraints widen deficits
While all five PGMs were in physical deficit last year, overall mine supply did edge up 2 percent year-on-year.
However, Metals Focus notes that this figure masks underlying weaknesses.
Much of the gain stemmed from temporary factors, such as the release of work-in-process stockpiles, particularly in South Africa, which accounted for a significant portion of the PGMs inventory processed during the year.
Platinum mine supply rose 3 percent to 5.77 million ounces, mainly due to output from South Africa, whose production exceeded 4 million ounces for the first time since 2021. Yet stripping out the one-time work-in-process boost, global production was more than 1 million ounces below the 2010 to 2021 average of 14.95 million ounces.
For palladium, mine supply rose less than 1 percent, bolstered by modest gains in Russia and stock drawdowns in South Africa, even as Canadian output dropped 10 percent due to price pressure.
The report notes that production cuts in high-cost regions were inevitable, owing to closures like Sibanye-Stillwater’s (NYSE:SBSW) shutdown of Stillwater West and curtailed operations at East Boulder.
In total, platinum ended the year with a second consecutive shortfall. Palladium was short by 407,000 ounces, continuing a near-decade trend of tightness. Rhodium, ruthenium and iridium also closed the year with deficits of 178,000 ounces, 219,000 ounces and 49,000 ounces, respectively — an across-the-board supply squeeze not seen in years.
Demand for PGMs shifts under electrification and industrial dynamics
On the demand side, the automotive sector — the dominant consumer of PGMs — saw a 4 percent contraction in fabrication demand to 12.14 million ounces, the first such drop since the pandemic year of 2020.
The continued rise of battery electric vehicles (BEVs), which do not use PGMs in their drivetrains, contributed to a 2 percent decline in catalyzed vehicle output. Although BEV growth slowed to 9 percent — its weakest since the technology gained mainstream traction — its market share still rose from 12 percent to 13 percent.
Hybrids, however, offered a bright spot for PGMs, with production jumping 28 percent and often requiring heavier PGMs loadings than traditional internal combustion engine (ICE) vehicles. This helped cushion demand for autocatalysts, particularly platinum, which saw slower rates of palladium substitution as the price gap narrowed.
Platinum demand, in contrast, overall fell by 2 percent to 7.79 million ounces. Automotive and industrial usage were also dragged down by a 27 percent plunge in chemical applications, particularly in China’s paraxylene sector.
But jewelry demand surged 9 percent — its strongest growth since 2019 — driven by India’s booming export orders and Japanese consumers shifting from gold due to its soaring price.
Ruthenium and iridium, the lesser-known PGMs, also saw rising industrial relevance.
Ruthenium demand surged by 20 percent — reaching its highest level since 2006 — fueled by China's caprolactam chemical sector and artificial intelligence-driven growth in hard disk drive production.
Meanwhile, iridium demand jumped 15 percent to a record 298,000 ounces, driven by ballast water treatment systems, acetic acid output and early stage copper foil applications.
Palladium, long buoyed by ICE reliance, saw total demand fall 4 percent to 9.75 million ounces.
Automotive fabrication dropped 5 percent, with thrifting and substitution playing an increasing role, though the latter slowed due to narrowing discounts with platinum. Industrial use remained stable, down less than 1 percent, with electronics up 1 percent amid recovering consumer tech and artificial intelligence hardware growth.
Recycling gains traction, but can't fill supply gap
Secondary supply helped offset falling mine output, with autocatalyst recycling up 9 percent year-on-year.
Metals Focus largely attributes this gain to higher vehicle scrappage rates, improved new car sales and aggressive recycling incentives in China. Still, recycling fell short of restoring equilibrium.
Platinum secondary supply rose just 1 percent as jewelry recycling remained weak, with Chinese and Japanese flows down due to sustained low prices and reduced scrap availability.
Palladium fared better with a 9 percent increase — its strongest growth in five years — again led by China, where palladium dominates catalytic converter formulations.
Yet, even with these gains, total recycling volumes were insufficient to offset underlying shortfalls. Jewelry scrap fell by 29 percent for platinum and 45 percent for palladium compared to 2021, underscoring a structural shift in the recycling base amid changing consumer behavior and metal substitution.
PGMs prices stabilize, but caution prevails
PGMs prices stayed fairly in 2024, with volatility restrained.
Platinum traded within a tight US$850 to US$1,100 per ounce band, hovering mostly from US$900 to US$1,000.
Palladium, despite ongoing bearish sentiment, found support at US$900 per ounce, while rhodium stabilized around US$4,400 per ounce after collapsing from highs above US$29,000 in 2021. Meanwhile, iridium fell 12 percent in price over the year, though bargain hunters helped maintain a floor around US$4,000 per ounce.
Ruthenium rebounded 24 percent from September lows, ending the year supported by robust Chinese demand.
While the PGMs markets appear to be finding their bottom, the Metals Focus report emphasizes that the risk of supply squeezes and price spikes remains.
Indeed, short positioning on the CME contributed to sporadic rallies, especially for palladium. Net managed money positions averaged 1.05 million ounces short for the year, peaking at 1.63 million ounces in August.
Metals Focus' 2025 PGMs outlook
Looking ahead, 2025 is expected to continue many of 2024’s trends.
Physical deficits will persist, particularly in rhodium, ruthenium and platinum. Aboveground stocks will remain elevated for platinum and palladium, muting potential price rallies, but continued mine cutbacks could shift this balance.
Metals Focus suggests platinum will average US$970, up slightly from 2024.
Palladium is expected to average US$930, down 5 percent year-on-year, while rhodium may rise 8 percent to US$5,000, supported by its deficit and scarce above-ground reserves. Ruthenium is forecast to jump 26 percent to US$550, with iridium expected to average US$4,100, a 14 percent drop driven largely by 2024’s elevated base.
In sum, 2024 marked a transitional year for the PGMs — one of normalization rather than expansion. Today supply remains tight, demand is recalibrating in the face of technological shifts and investors are returning cautiously.
Whether 2025 brings further recovery or renewed disruption for the collective will depend not just on markets — but also on mines, metals and momentum-shifting market sentiment.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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12 March
WPIC: Platinum Due for Another Deficit as Price Range Narrows
Platinum moved into a more pronounced deficit position in 2024, with demand outstripping supply of the precious metal by nearly 1 million ounces, according to the World Platinum Investment Council's (WPIC) Platinum Quarterly for Q4 2024.
A significant portion of that came in the final quarter of the year, when the deficit grew by 313,000 ounces.
This was driven largely by investment demand on the back of Donald Trump’s victory in the presidential election and subsequent rhetoric over planned trade and foreign policy.
The Investing News Network (INN) spoke with WPIC Director of Research Edward Sterck on March 5 for further insight on what drove the precious metal in Q4 and what the council is forecasting for 2025.
Increased demand adding to supply draw down
According to the new report, the platinum deficit deepened in Q4 on the back of weaker recycling supply and stronger investment demand, coming in 313,000 ounces deeper than the council forecasted in its Q3 2024 report released in November.
In total, the last quarter of 2024 saw 360,000 ounces of demand uptake from investor inflows into the platinum market. On a more granular level, this demand came from 92,000 ounces of platinum bar and coin purchases, 142,000 ounces in platinum inflows to exchange traded funds (ETFs) and 126,000 ounces of platinum moving into exchange stocks. The WPIC defines exchange stocks as "platinum ounces held in approved storage facilities that serve as collateral for futures positioning."
In his interview with INN, WPIC's Sterck said the movement in exchange stocks was heavily influenced by the threat of trade tariffs made by then US President-elect Donald Trump.
“So back in December, when the incoming Trump administration started talking about the threat of tariffs, we began to see that impact on the commodity markets in terms of distorting the flow of metals versus what would happen normally,” he said.
Similar to what was reported in gold markets, this resulted in institutional players moving physical products from Europe into New York Mercantile Exchange-approved warehouses in the United States.
“They needed to get that into the States because they’ve suddenly begun to worry that they might have to pay tariffs when they bring that material in in the future, and that would obviously impinge on profitability,” Sterck said.
Watch the full interview with Sterck above.
In its projection for 2025, Sterck said the council sees a continuation of trends from 2024 and is predicting a third year of platinum deficits with an 848,000 ounce shortfall.
In its initial assessment, the WPIC expected 150,000 ounces of full year demand to come from exchange inflows to the NYMEX, but according to Sterck, 275,000 ounces have already been moved since the start of the year.
“You can see that even to get to our number for 2025, you’d have to have quite a significant unwinding of those NYMEX exchange stock flows to get back to where our full year estimate is. So if we were to close the year today, the deficit would be more substantial than our current projection,” he said.
Trump policy, the auto industry and platinum
If US tariffs on Mexico and Canada do come into effect, platinum investors and the auto industry are likely to feel the pinch.
Sterck explained that, while the bulk of North American auto manufacturing is carried out in the United States, the auto sector is highly integrated. Mexico manufactures about 45 percent of the United States' automobile parts and 15 percent of the country's vehicles, and Canada supplies an additional 10 percent and 7.5 percent respectively.
These automobile parts include the catalytic converters, which have significant load-outs of the core platinum group metals (PGMs): platinum, palladium and rhodium.
According to Sterck, the overall fear is that the increased cost of new cars for US consumers caused by the tariffs will reduce demand, putting downward pressure on PGMs as well.
“In terms of platinum, the downside risk to platinum demand on our numbers in a worst-case scenario is about 97,000 ounces. For palladium, it's more substantial, something in the order of 350,000 ounces,” he said.
While this may more significantly impact palladium markets, Sterck doesn’t see this potential hit to platinum demand shifting the platinum deficit that the WPIC is predicting for 2025.
Other policy decisions by the new US administration will likely provide support for platinum, however.
"Sadly, it looks like the US is going to be rolling back on its environmental commitments," Sterck said. "Obviously, that could be positive in terms of petroleum demand for PGMs (and) internal combustion engine demand for PGMs."
Additionally, slowing of demand growth for electric vehicles (EVs) adds potential tailwinds for automotive platinum demand. Sterck suggests several factors contribute to the slowing rates, including US policy and backlash against Tesla (NASDAQ:TSLA).
While some consumers are turning to battery electric vehicles from other automakers, he notes that the trend of slowing growth in EVs is leading more consumers to look to cars with internal combustion engines, both traditional and hybrid, which require PGMs in their catalytic converters.
Supply-side squeeze
On the supply side, Sterck sees consistent contraction in the mining supply.
“The reality is that there isn’t a (solely) platinum mine in the world,” he said.
"These mines all produce — and therefore their economics depend upon — multiple different metals. They all produce all six of the PGMs, plus gold (and) nickel, copper and chrome."
However, Sterck explained that lower prices for palladium, rhodium and more recently chrome has led some of the miners to restructure operations to focus on profitability rather than output. While this has been successful at supporting the mines' economics, it has caused output to fall significantly.
He also says that the overall impact of the reduced output has been masked by platinum stockpiles entering the market, with higher inventory levels introduced in 2024.
He pointed to South Africa as an example, which saw reduced smelter output and a stockpiling of concentrate in 2022 and 2023 due to power shortages. In 2024, the decline in mine production came alongside an upside in refining those stockpiled materials, which boosted full-year numbers.
Platinum supply from recycling is expected to remain about 20 percent below the 10 year average at 1,496,000 ounces, a decrease of 278,000 ounces from the WPIC's 2025 forecast in its November release. This drop was the largest difference between the two releases.
Sterck explained that one cause of depressed recycling supply in 2024 and 2025 is declining supplies of end-of-life vehicles.
“Part of that is related to COVID impacting supply chains, and then the semiconductor shortage reducing new vehicle production in the past and consumers being forced to run new vehicles for longer,” he said. However, he said there could be other reasons that aren’t as apparent.
What should investors know about platinum in 2025
As Sterck pointed out, the platinum market was volatile at the beginning of the year, so the 2025 WPIC forecast may need to be significantly adjusted. However, the group said the market will continue to experience structural deficits in 2025.
While investment demand surged 77 percent in 2024, Sterck sees a pullback of 14 percent in 2025, but even that is high compared to previous years.
“Overall, I think we’ve got 606,000 ounces projected in terms of total demand for 2025, a respectable level that’s historically elevated,” he said.
One significant area of growth so far in 2025 is futures trading on the NYMEX, with Sterck pointing to a 500 percent year-on-year increase in January.
However, there hasn’t been much price movement so far. Platinum has largely traded in the US$900 to US$1,100 per ounce range for the past year, but unusually, with the increased trading volume, the prices have narrowed.
“There’s increasing competition within the market for some sort of price direction, and at some point, the price has to break out of that narrowing range,” he said.
Given the market conditions for platinum, the WPIC expects that breakout would be a positive one, but it's not a guarantee.
“When prices break out, it can go in both directions, so we will have to wait and see," Sterck said. "But it's certainly very interesting, and there’s a limited amount of time left before something really needs to change."
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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13 February
Gold vs. Platinum: Which is the True Metal of Love?
Valentine’s Day is here again — the season of grand gestures, red roses and debates over the perfect gift.
Jewelry is a favorite choice, with engagement rings, bracelets and necklaces serving as timeless symbols of love. But when it comes to picking the ultimate metal of romance, is gold the champion, or does platinum reign supreme?
Both metals have a long history of adorning royalty, marking milestones and symbolizing love. But they offer very different qualities, from durability and symbolism to price and prestige.
If you’re planning to gift — or receive — a piece of jewelry this Valentine’s Day, here’s everything you need to know about the real heavyweight battle: gold vs. platinum.
Round 1: Strength and durability
Love is supposed to last forever, and so should your jewelry.
Here, platinum lands its first punch. It’s one of the most durable precious metals, allowing it to resist wear and tear and retain mass over time. That means an engagement ring or wedding band made of platinum will stay nearly the same for decades, even with daily use. Plus, it’s naturally white and never fades.
Gold, on the other hand, is softer. Pure 24k gold is too malleable for jewelry, so it’s mixed with other metals to create 18k or 14k gold. Even then, it’s still prone to scratches and thinning over the years, especially in rings worn daily.
White gold, which competes directly with platinum in color, requires rhodium plating to maintain its bright sheen — and that plating can wear off, meaning you’ll need occasional reapplications to keep it looking fresh.
Winner: Platinum. It’s tougher and ages gracefully — just like a strong relationship.
Round 2: Symbolism and romance
Gold has been the metal of love for centuries. Ancient Egyptians associated it with eternity, Romans crafted wedding rings from it and it’s been a staple in engagement rings for generations.
Its rich, warm hue is often linked to passion and commitment, making it the classic choice for romantics.
Platinum, however, is the modern-day love metal. It’s rarer, more exclusive and represents endurance and resilience — qualities many couples see as ideal in a relationship.
In the early 20th century, platinum became the go-to metal for high-end jewelry, and brands like Tiffany & Co. (NYSE:TIF) solidified its reputation as the luxury choice for engagement rings.
Winner: Tie. Gold is the traditional favorite, but platinum’s rarity and strength make it just as meaningful.
Round 3: Price and investment value
If your Valentine’s Day gift doubles as an investment, gold might be the safer bet.
Gold has been a recognized store of value for centuries, often increasing in price during economic uncertainty. The yellow metal is also easier to trade and sell, making it a more liquid asset.
Currently gold is priced at over US$2,900 per ounce, trading near its all-time high.
Platinum, while rarer than gold, doesn’t always hold its value as consistently. Its price fluctuates more due to industrial demand, particularly in the automotive sector (it’s a key material in catalytic converters).
Its highest price ever is US$2,290 per ounce, a level it hit in 2008; presently the metal is valued at US$1,035.
Winner: Gold. If you’re thinking about long-term financial value, gold’s track record makes it the better investment.
Round 4: Wearability and maintenance
Comfort is key when wearing jewelry every day.
Platinum is denser and heavier than gold, and while some love this substantial feel, others find too weighty. It also develops a natural patina over time — a slightly matte finish that some appreciate, but others might want to polish away.
Gold, being lighter, is generally more comfortable for everyday wear.
Yellow and rose gold don’t require extra maintenance, but white gold does — it needs regular rhodium plating to maintain its bright finish. If you’re not a fan of frequent upkeep, that’s something to consider.
Winner: Gold. It’s lighter and offers more color options. But platinum wins for those who don’t mind a bit of patina.
The verdict: Which metal should you choose?
So, which is the real metal of love? Well, it depends on what matters most to you.
- If you want durability and timeless strength, platinum is your best bet.
- If you value tradition, warmth and investment potential, gold is the classic choice.
- If you’re after a low-maintenance option, yellow or rose gold requires the least upkeep.
- If you want something rare and exclusive, platinum’s prestige is hard to beat.
At the end of the day, both gold and platinum have their own magic. Whether you go for the rich glow of gold or the cool resilience of platinum, the most important thing is the love behind the gift.
Because let’s be honest — when you’re in love, any jewelry will sparkle a little brighter.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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22 January
Platinum Price Forecast: Top Trends for Platinum in 2025
The platinum price fluctuated in 2024, trading between US$900 and US$1,100 per ounce.
Some of its gains were due to strong demand from the automotive sector, which reached a seven year high during the first quarter. Interest rate cut speculation in May also helped boost precious metals prices.
Platinum reached its year-to-date high of US$1,094 on May 17.
The price of the metal also benefited from a supply shortfall of more than 450,000 ounces for the year.
Platinum demand expected to stay flat
According to the most recent data from the World Platinum Investment Council (WPIC), overall platinum demand is expected to remain relatively flat in 2025, falling 1 percent to 7.86 million ounces.
The automotive sector will remain the largest price driver, but for how much longer remains to be seen.
Both platinum and palladium can be used in catalytic converters, which help eliminate toxic emissions from vehicle tailpipe gases. As their prices fluctuate, platinum and palladium tend to be swapped.
Currently, palladium is trading at a premium to platinum, and its price will likely need to be considerably lower before parts makers start retooling processes to swap between them.
Although light vehicle sales are expected to grow by 1.7 percent in 2025, an increasing number will be electric vehicles (EVs) that don’t require platinum or other platinum-group metals.
S&P Global Mobility projects that the global market share for EVs will rise to 16.7 percent over the next year, a significant increase from 7 percent in 2023. It sees 15.1 million EV units being sold.
Jewelry also provides significant demand for platinum. In 2025, the WPIC forecasts that demand will see a 2 percent rise to 1.98 million ounces, up from 1.95 million ounces the previous year.
Investment demand is also expected to grow in 2025, rising 7 percent from 2024 to 420,000 ounces.
The figures from the WPIC show that demand gains will be offset by a 9 percent decline in industrial demand, which is seen falling to 2.22 million ounces from 2.43 million ounces last year. The use of platinum in the production of glass is forecast to decline the most, 57 percent, to 286,000 ounces from 671,000 ounces in 2024.
Due to its high melting point, platinum is used to line vessels and coating equipment used in the production of glass, particularly glass used for liquid-crystal displays. In 2021, the use of platinum surged as display manufacturers increased furnace capacity and glass fiber production lines.
Small increase anticipated for platinum supply
Platinum supply is forecast to increase marginally by just 0.76 percent in 2025.
Supply is anticipated to come in at 7.32 million ounces, up slightly from the 7.27 million ounces produced in 2024. This sets the market up for a supply shortfall of 539,000 ounces this year.
Refined production is expected to contract by 1 percent, with 5.55 million ounces entering the market compared to 5.63 million ounces last year. South Africa is one location where output has fallen off.
The decline was acknowledged in August, when Paul Dunne, CEO of producer Northam Platinum Holdings (OTC Pink:NPTLF,JSE:NPH), said the “industry had entered into a phase of irreversible decline.” He suggested this was due to a combination of low prices and a challenging demand landscape as EV adoption gains traction.
Secondary supply from all recycling sources is expected to reach its highest level since 2021, rising 12 percent to 1.77 million ounces. Although platinum is predicted to be in a supply deficit for the third year in a row, this setup may not significantly impact prices owing to more than 3.01 million ounces held in aboveground stockpiles.
What is the platinum price outlook for 2025?
In a video outlook, Jeffrey Christian, managing partner at CPM Group, predicts that the platinum price will remain relatively flat in 2025, possibly facing downward pressure in the year ahead.
This would put the price for the precious metal in the US$900 to US$1,000 range.
With the platinum market expected to continue in deficit through 2025, Heraeus Precious Metals believes there will be some price support. However, like CPM, the firm doesn’t see much upside for the metal over the next year.
Heraeus predicts the metal's price will range from US$850 and US$1,220.
UBS Group (NYSE:UBS) echoed this sentiment with a price target of US$1,100 for the middle of the year.
The Swiss bank believes that real assets will be supported as the US Federal Reserve eases interest rates, though it suggests platinum is likely to lag behind gold until rates support higher industrial activity.
With all of that said, global geopolitical tensions remain high, and with the platinum price predicted to remain tight in 2025, it may not take much to upset that balance. An example of this came this past October, when the threat of further sanctions against Russia caused price rises for both platinum and palladium.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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