Platinum demand from the automotive sector 'will remain firm' in 2018

Global: Overall demand for platinum is forecast to increase by 2% in 2018 compared to the full year 2017, according to new data released by the World Platinum Investment Council. Supply, on the other hand, is said to fall by 1% next year.

After a tough 2017, industrial demand is expected to rebound by 9% in 2018, largely driven by increasing demand from the petroleum and glass sectors.

Meanwhile, global automotive demand is expected to remain largely stable, down around 1% over 2017.

Recycling supply is predicted to increase by 2%, although analysts warn that the ‘increasing complexity’ of autocatalysts is making recovery of the metal more tough.

‘2017 has undoubtedly been a challenging year for the platinum market, but our independent forecast of the fundamental supply and demand drivers for 2018 shows a new, more positive picture emerging,’ observes Paul Wilson, ceo of the World Platinum Investment Council.

‘In particular, jewellery demand is expected to return to growth for the first time in four years in 2018. Industrial demand was weak in 2017, but will sharply rebound in the coming year,’ he goes on to state.

‘Demand from the automotive sector will remain firm,’ Wilson adds. He cites increasing anecdotal evidence that automakers in the US and Europe are ‘actively considering’ switching from palladium to platinum loadings on gasoline vehicles.

‘This will likely have a considerable impact on short to medium-term platinum demand should it come to fruition,’ the ceo remarks.

 



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