Platinum facing biggest deficit in years as carmakers snap up metal

Rising demand from automakers, industry and investors will push the global platinum market into its biggest deficit in years, three industry reports predicted on Monday.

The reports underline an emerging change in fortunes for platinum and its sister metal palladium, both used chiefly in vehicle exhausts to neutralise harmful engine emissions.

For years, rising demand and undersupply of palladium pushed prices higher, while lacklustre consumption and more plentiful availability kept platinum prices low.

Two of Monday’s reports predicted that while palladium would remain in deficit this year, platinum’s undersupply would be bigger.

Automakers are now shifting from palladium to platinum to save money, production of platinum-intensive heavy-duty vehicles is rising, and exhaust-free electric vehicles are making inroads into the palladium-focused light vehicle market.

Also supporting platinum are consumption by industry and jewellers, while palladium demand depends almost entirely on autos.

This report’s information was first seen on REUTERS; to read more, click this link.