Platinum Prices Rise on Market Deficit

Platinum

Platinum prices rise on market deficit as speculation and tight supply collide. Platinum prices rise on market deficit after gold and silver surged. As a result, investors refocused on fundamentals while South African mine output stayed constrained.

Liquidity, tariffs, and China shape the rally

Platinum prices rise on market deficit and stronger cross-metal sentiment. Johnson Matthey assessed platinum at $1,608/t on 29 September. Prices jumped 15pc since 19 September and 72pc year to date. However, macro drivers also mattered as the Fed signaled rate cuts.

Platinum trade liquidity spiked in early 2025 on tariff speculation. Over 500,000oz moved into Nymex inventories by early April, Heraeus reported. Inventories then whipsawed as stocks drew down and rebuilt. Meanwhile, Chinese investment and jewellery demand strengthened. More than 30 jewellery makers entered platinum this year from fewer than 10.

Third straight deficit underpins structural support

Tight mine supply magnified the price response. South African platinum output fell 10pc year on year in the first quarter. Producers also closed shafts and delayed projects after weak PGM basket prices. Therefore, above-ground stocks continued to shrink, heightening volatility.

The WPIC expects a third consecutive deficit in 2025 of about 850,000oz. Market participants still see robust industrial demand and auto substitution. Battery-electric growth tempers catalysts, but platinum use remains resilient.

Near-term demand hinges on China’s Golden Week retail sales. If jewellery inventories fail to clear, metal could be remelted. That would return units to market and potentially ease price pressure. Even so, prices likely remain above 2024 levels this year.

The Metalnomist Commentary

The platinum tape now reflects classic deficit dynamics amplified by macro momentum. Watch Nymex stocks, South African maintenance schedules, and Chinese retail sell-through as leading indicators. Sustained deficits suggest dips may be shallow unless jewellery remelt accelerates.