The platinum market outlook.
After declining in 2015, the platinum price has remained modest this year, underperforming other mined commodities. The closely watched ratio to the gold price is near a historic low. Demand from the automotive sector has yet to recover from emission test scandals, despite car sales in China growing by 15.6% year-on-year in the first eleven months of 2016. South African miners are capital-constrained and the global market is currently estimated to be in a supply deficit of around 500 thousand ounces (koz). However, registered above-ground stocks are still significant at 1.9 million ounces (moz).
Higher steel prices may increase scrap-steel demand, which may boost vehicle scrapping and increase recycling of platinum auto-catalysts.
World leader Amplats will lose 75 koz of refined platinum production following a leak at the Waterval smelter.
Production of alluvial platinum in the far east of Russia is entering terminal decline after two decades of operation.
