Global Platinum Market Faces Third Consecutive Deficit in 2025: WPIC

The World Platinum Investment Council (WPIC)

Falling supply and constrained recycling deepen structural shortfall, despite slight dip in demand.

The World Platinum Investment Council (WPIC) projects that the global platinum market will face a structural deficit for the third consecutive year in 2025. The forecasted 848,000 oz shortfall follows a deeper-than-expected 995,000 oz deficit in 2024, up 46% from WPIC’s initial estimate.

Platinum demand in 2024 hit 8.28 million oz, its highest since 2019, driven by strong investor activity and a rebound in jewelry demand. Even though total demand is expected to decline by 5% to 7.85 million oz in 2025, it still exceeds the five-year average.

Automotive and Investment Demand Keep Platinum Consumption Elevated

Automotive platinum demand declined by 2% to 3.13 million oz in 2024, largely due to weaker heavy-duty vehicle production and lower internal combustion engine (ICE) vehicle output in Europe. However, demand remained resilient in other regions and is projected to fall only 1% in 2025, to around 3.1 million oz.

The WPIC noted that despite a 22% rise in battery electric vehicle production, which do not use platinum, policy trends in the U.S. could drive sustained ICE vehicle sales, supporting automotive platinum demand over the long term.

Meanwhile, investment demand and jewelry purchases continued to boost overall consumption in 2024 and are expected to remain supportive throughout 2025.

Supply Set to Contract, Recycling Remains Weak

On the supply side, total platinum output is expected to fall 4% to just above 7 million oz in 2025. This decline is due to projected mine output drops in South Africa and North America, the two largest producers.

Recycling volumes remain historically low, reaching only 1.486 million oz in 2024, the weakest level since WPIC began tracking in 2013. A modest 1% increase to 1.496 million oz is expected in 2025, but this will have minimal impact on offsetting the supply gap.

WPIC highlighted that reduced recycling is the primary reason for the deepened 2025 deficit forecast, underlining the market’s increasing vulnerability to supply disruptions.