Platinum prices rise on supply misalignment

Platinum Raw Material

Platinum prices rise on supply misalignment, tightening liquidity across key hubs. Heraeus reports a 4% weekly gain to $1,442/oz. Implied lease rates also climbed, signalling stress in physical availability. As a result, some users face delays sourcing metal.

Lease rates spike as stocks shift

Heraeus links the squeeze to a geographic reshuffle of stocks. Starting late 2024, metal moved from London into the United States. Meanwhile, Chinese imports increased this year, absorbing additional supply. Consequently, inventories clustered away from end users. Platinum prices rise on supply misalignment when metal pools far from demand centres.

South African output adds upside risk

Limited South African production compounds tightness. Valterra Platinum’s second-quarter output fell year on year. Therefore, supply expectations weakened into the second half. Platinum prices rise on supply misalignment when mine flows underperform.

Institutional buyers now juggle higher borrowing costs and thinner spot liquidity. However, stabilised logistics could normalise lease rates. Until then, participants may prioritise term contracts over discretionary purchases.

The Metalnomist Commentary

The market’s pain point is location, not only volume. Unless stocks rebalance toward consuming regions, lease stress may persist. Watch South African mine cadence and Chinese import appetite for the next price leg.