The World Platinum Investment Council (WPIC) published its Platinum Quarterly on Nov. 22, for the third quarter of 2022, with a revised forecast for 2022 and first forecast for 2023.
According to the WPIC, the platinum deficit forecast for 2023 indicates demand to grow by 19%, while supply by just 2%. As well, a downward revision of the surplus forecast in 2022 by 17% is expected. The automotive demand continues an upward trajectory; up 12% in 2022 and 11% in 2023. Despite economic headwinds, industrial demand in 2023 to be up 10% and well above the 10-year average. Bar and coin demand is forecasted to jump 49% in 2023, driving overall investment demand positive.
“Despite the unfavourable economic outlook, platinum's resilience reflects growing automotive demand mainly due to increased substitution and higher loadings, and already committed industrial capacity additions. This puts platinum in a somewhat unique position versus other commodities in that demand is forecast to continue to grow, despite the recessionary outlook,” said Trevor Raymond, CEO of the WPIC.
"Moreover, the recent COP27 has highlighted that the need to decarbonize is more acute than ever. Green hydrogen produced by platinum-containing electrolysers and used to displace natural gas, or as an energy source in fuel cell electric vehicles, has a significant role to play in the energy transition. While hydrogen-related platinum demand is relatively small in 2023 – of more relevance in a tight market – it is expected to grow substantially in the medium term, offering an option to investors looking for exposure in this area and further strengthening the investment case for platinum based on future demand growth," Raymond said.
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