First new market forecasts for Platinum and Palladium – Commerzbank
|A market-leading refiner of Platinum group metals headquartered in London yesterday published its new forecasts for the supply and demand of Platinum group metals, Commerzbank's commodity analyst Carsten Fritsch notes.
Platinum faces third straight year of major supply deficit
"According to the forecast, the Platinum market is expected to show another considerable supply deficit of 736 thousand ounces this year. This would be the third consecutive significant supply deficit. Demand is expected to fall by 2.6% because the automotive industry is likely to require less Platinum and investment demand is also expected to decline. Supply is expected to fall by 1.3%. The main reason for this is a 5% drop in mine production in South Africa. This will prevent a smaller supply deficit."
"The company expects the Palladium market to be almost balanced this year, following a supply deficit of 501 thousand ounces in the previous year. The reason for the vanishing supply deficit is a 6.4% decline in demand. Similar to Platinum, this is due to lower Palladium demand from the automotive industry and weaker investment demand. The latter is expected to be negative for the first time in three years, which can be explained by expected ETF outflows. Palladium supply, on the other hand, is only expected to fall by 1.7%."
"This is mainly due to a decline in mine production in South Africa and North America. In contrast, the recycling supply from the automotive industry is expected to increase. Other market observers such as the World Platinum Investment Council and Metals Focus, a research company specialising in precious metals, are expected to publish their new forecasts on Monday."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.