In 2021, the global platinum demand had totalled at just over 7 million ounces.
SEATTLE (Scrap Monster): The latest report published by the World Platinum Investment Council (WPIC) suggests that the market surplus is expected to further widen during the current year, despite the tight supply condition. This is mainly due to weakening global investment demand for the metal, on account of global macro environment.
According to the report, the platinum market surplus is expected to rise to 974,000 ounces in 2022, significantly higher than the earlier forecast of 627,000 ounces as outlined in the previous report. WPIC forecasts the market surplus during Q2 this year at 349,000 tonnes, higher from 130,000 ounces in Q1 this year.
In 2021, the global platinum demand had totalled at just over 7 million ounces. However, the falling ETF investment has made the Council revise the forecast to 6.5 million ounces during the current year. Incidentally, ETF holdings in platinum contracted by 89,000 ounces in Q2 this year and are expected to witness a decline by 550,000 ounces during the whole year 2022.
Meantime, the physical demand remained fairly resilient during the quarter. The automotive demand fell by 5% from the previous quarter to 708,000 ounces in Q2 2022. Jewellery demand too witnessed 5% year-on-year improvement, triggered by boosted demand from the American and European markets.
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