Johnson Matthey: Platinum Demand to Increase, Palladium Deficit Shrinking

Bloomberg reported that Johnson Matthey is predicting higher platinum demand and a shrinking palladium deficit for 2016.
As quoted in the publication:

Automakers will buy more platinum to use in devices that curb harmful emissions from vehicles, though the growth rate will be slower than in the last two years, the London-based company said in a report. While slumping platinum and steel prices have reduced the incentive to scrap older cars this year, there may be a “double-digit” increase in the amount of metal recycled from vehicles in 2016, it said.
… Palladium’s shortage is set to narrow 76 percent to 427,000 ounces this year on higher output from South Africa and sales by investors, the report showed. The market has been in deficit since 2012.

Demand from car companies, which probably increased 0.8 percent to a record this year, will rise “modestly” in 2016, the report showed. Scrap supply should climb “strongly” and there’s a potential for more sales from exchange-traded products, it said.