The global platinum market is likely to experience a second straight year of deficit in 2020 at just over 1.2 million ounces, and 2020 supply is down 18% and demand is down 5%, Kallanish reports.

In a first forecast for 2021, supply will likely be up 17% and demand up 2%. For full-year 2021, another platinum deficit is projected, although it will be reduced to 224,000 ounces.

That information is contained in the World Platinum Investment Council’s latest quarterly report.

It says there is strong evidence of a 3Q 2020 recovery with supply up 48% and demand up 75% over 2Q 2020 as coronavirus pandemic lockdowns globally have ended. But the demand for platinum outstripped the supply in 3Q 2020 by 709,000 ounces due largely to automotive demand and strong investment demand in precious metals, it says. That investment demand will remain high, it adds.

Total mine supply forecast for 2020 is projected to drop by 21% y-o-y or 1.3 million ounces due to mine shutdowns and converter plant outages.

The report says platinum’s key role in the hydrogen economy, fuel cells and automotive demand has triggered that growing demand. It suggests that the global automotive demand for platinum in 2021 will grow by 24% or about 575,000 ounces.