The platinum market shifted to a more balanced state in Q3’23, posting a 40 koz deficit. While the global economy is still growing in absolute terms, the rate is slowing. The IMF describes growth as limping rather than sprinting. Despite the tepid economic performance, higher vehicle production, more stringent emissions regulations, and increased platinum loadings in gasoline cars saw demand for platinum in the automotive sector increase by 14% (+96 koz).
We saw virtually neutral net investment (versus disinvestment in Q3’22), lower change out activity in the petroleum sector and only modest gains in the glass sector in this quarter compared to Q2’23. After experiencing record-high industrial demand in Q2’23, this is forecast to be 116 koz lower than in Q2’23, but still 6% higher than Q3’22.
Jewellery demand contracted by 5% year-on-year (-26 koz) as the growth in North America stalled, and Chinese consumers continue to prefer gold over platinum. Investment overall was close to balance (showing disinvestment of a mere 11 koz to be precise), as ETF liquidations of -99 koz more than offset the 59 koz year-on-year increase in bar and coin investment and a rise in exchange stocks. Global demand of 1,810 koz in Q3’23 was 24% (+349 koz) higher year-on-year on the back of fewer ETF liquidations and lower outflows from exchange stocks compared to Q3’22, as well as healthy automotive demand (up 14%) to 793 koz and modest increases in industrial demand, which rose to 574 koz, up 6% on Q3’22.