The US relies at 90% on imports of PGEs (Platinum Group Elements), which are essential for the purification of automobile exhaust, the manufacture of glass, fertilizers, high octane fuel and a variety of chemicals including anticancer drugs. They are commonly used in jewelry and electronics such as hard drives, circuits and cell phones. PGEs could also play a crucial role in fuel cell technology to generate clean energy for cars, homes and businesses. The initial inventory and geological assessment of known and undetected platinum group element (PGE) resources estimate that more than 150.000 tonnes of PGEs can exist in the two South African countries that produce most of the global supply of these critical elements. That is more than 20 times the total tonnage produced in these countries since the beginning of PGE mining in the 1920s. The identified resources, given current growth rates and supply, including recycling, will meet global demand over many decades, the study said. About 90% of Earth's PGEs occur in limited areas of only three countries: South Africa's Bushveld Complex, Zimbabwe's Great Dam, and Russia's Norilsk region.
The surplus in the global platinum market is shrinking 2019 with strong investment demand
Second quarter ETF growth for platinum after record first quarter growth
SA mining offer plus 1% year-on-year after one-time release of pipeline holdings
Net income shrinks towards a balanced market in the wake of gains from investment demand
The World Platinum Investment Council (WPIC) today released its second quarter 2019 Platinum Quarterly, revised 2019 annual forecast and 2018 official numbers.
Today's report shows a significant increase in total demand for platinum in 2019 on the back of solid investment demand, more than offsetting the expected decline in demand in the automotive and jewelry segments of 4% and 5%, respectively. 855's unparalleled investment demand in the first half of the year is due to an increase in ETF holdings, which increased by 2019 koz.
Platinum supply is expected to increase by a total of 4% this year. However, this growth is mainly due to the upgrading of mined metal that 2018 has accumulated in the processing pipeline in South Africa. Potential disruptions to energy supply and labor disputes in the second half of the year 2019 continues to present risks that could affect South African mining supply.
As demand is expected to outstrip supply, the annual market balance for 2019 will decrease to a surplus of 345 koz from the previously forecast surplus of 375 koz.
In the second quarter of 2019, refining part of the pipeline portfolio and increasing the recycling rate of autocatalysts resulted in a surplus of 220 koz. Due to the record deficit of 590 koz in the first quarter, the market posted a deficit of 370 koz in the first half of the year.
Although demand for 2019 in the first quarter decreased by 50 koz compared to the previous year, the rate of decline continues to decline as there is independent evidence of exceptionally low NOx emissions coupled with low CO2 emissions from the new
Diesel vehicles have occurred. Diesel vehicles will play a crucial role in reducing the CO2 emissions of the EU fleet, which is necessary for car manufacturers to avoid high fines. There has been a significant increase in reports on the wider use of fuel cell electric cars and trucks, as well as in off-road applications, e.g. B. in trains. This underscores the ever-increasing likelihood that fuel cell electric vehicles are part of a multi-powertrain solution to achieve zero emissions on the road.
Quarterly jewelry demand continued to decline year-on-year, with 30 koz down on weaker demand in the Chinese market. Industrial demand in the first quarter of 2019 increased slightly compared to the first quarter of 2018 as demand for platinum for chemical catalysts and glass production was offset by declines in other industrial demand segments.
Paul Wilson, WPIC's Chief Executive Officer, said: "Today's report shows continued growth in investment demand driven by investors' recognition of the potential for demand and price increases in platinum. This was aided by the uncertain capital markets, which saw inflows for most precious metal ETFs this year, which also benefited platinum greatly. Institutional investment demand saw an unprecedented start this year with ETF purchases in the first half of 720 koz.
European car manufacturers continue to emphasize that diesel vehicles, with their lower CO2 emissions, play a crucial role in complying with the CO2 emissions requirements of the European fleet. Coupled with the likely substitution of platinum for palladium in gasoline autocatalysts, this reinforces the potential for future platinum demand growth.
We continue to expand our product partnerships in two of our key markets, China and North America. We are pleased to announce that we have made good progress with two new partnerships in the US with A-Mark Precious Metals and Sunshine Minting Inc. In China, the partnership with the Bank of China has led the Agricultural Bank of China to share our insights into platinum Investment offers. Two new partners, Shenzhen Jin Zheng Long and Dalian Qian Hai Jin, are now producing platinum bars for retail in China. These partnerships will further increase the number and availability of platinum investment options for investors in both these regions and globally. "
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About the World Platinum Investment Council
The World Platinum Investment Council Ltd. (WPIC) is a global physical platinum investment market institution established to meet investors' growing demand for objective and reliable information about the platinum market. The WPIC's mission is to drive investor demand for physical platinum worldwide through actionable insights and targeted product development. The WPIC was founded in 2014 by the leading platinum producers in South Africa. Members of the WPIC are: Anglo American Platinum, Impala Platinum, Lonmin, Northam Platinum, Royal Bafokeng Platinum and Sibanye-Stillwater.
More information on www.platinuminvestment.com
The WPIC office is located in: 64 St James's Street, London, SW1A 1NF. About SFA (Oxford)
SFA (Oxford) was founded in the year 2001 and is considered one of the most important independent bodies in the market for platinum metals. The company's extensive market research and integrity is underpinned by comprehensive advice from mine to market to the recycler as well as an unparalleled global industry network.
SFA has a team of nine dedicated platinum metals analysts with extensive industry knowledge, each specializing in a core value chain, as well as a large number of international employees. SFA can provide its customers with answers to the toughest questions that affect the future of the industry.
No part of the data or comments may be used without the written permission of the authors for the specific purpose of accessing capital markets (raising funds).
For more information, please visit: http://www.sfa-oxford.com
Source: SFA (Oxford). Notes: 1. All estimates are based on the latest information available. They will be reviewed in our subsequent quarterly reports in case additional information becomes public. 2. The WPIC has not released quarterly estimates for 2013 or the first two quarters of 2014. However, quarterly estimates from Q3 2014 to Q4 2016 are included in previously published PQs, which are freely available on the WPIC website. Quarterly estimates from the first quarter of 2017 and half-year estimates from the first half of the year 2017 are included in tables 3 and 4 on pages 14-15 (supply, demand and above-ground levels). 3. Forecasts for 2019 are based on historical data and trends as well as modeling with varying degrees of accuracy according to supply or demand category. Investment demand is likely to be the least predictable segment. Some historical views are based on data and modeling that precede PQ's WPIC publication.
About platinum
Platinum is one of the rarest metals in the world with special properties, which makes it a high priority in a number of different demand segments. The unique physical and catalytic properties of platinum have their value in industrial
Applications justified. At the same time, its unique precious metal features have made platinum a leading jewelry metal.
The platinum supply comes from two main sources: primary mining and recycling, which usually comes from discarded catalytic converters and jewelry recycling. In the past five years, 72% and 78% of the total annual platinum supply (in troy ounces) came from primary mining production.
The global demand for platinum is stable and diversified. There are four core segments for platinum demand: automotive, industrial, jewelry and investment needs.
The demand for platinum from catalytic converters was between 41% and 43% of total demand in the last five years. The various other industrial uses of platinum averaged 22% of total global demand (average of the past five years). Over the same period, global annual jewelry demand averaged 33% of total platinum demand. Investment is the smallest category of demand for platinum and also the most variable in the past five years. It was between 0% and 6% of total demand (excluding changes in investors' holdings in safes).
Press inquiries please contact Kekst CNC:
Simren Priestley +44 203 7551 670 ppgad@pucrs.br
Text: World Platinium Council / ISE - September 2019
