Platinum Price Trend and Forecast

Platinum Regional Price Overview

Get the latest insights on price movement and trend analysis of Platinum in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Platinum Price Trend for the First Half of 2024

In the first half of 2024, platinum prices exhibited significant volatility despite ongoing strong demand and a persistent supply deficit. The year began with a decline in prices during the first quarter, reflecting investor caution amid fluctuating market dynamics. The decline was influenced by a buildup of inventories over the past decade, which dampened the enthusiasm for aggressive investment despite the metal's high industrial demand. Although platinum experienced some recovery in March, the market remained unstable, with prices fluctuating due to varying influences from related precious metals like gold and silver.
 

Platinum Price Chart

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As the second quarter began, platinum prices showed signs of recovery, driven by increased demand from key industrial sectors, particularly the automotive industry. The substitution of platinum for palladium in autocatalysts, due to the latter's higher price, contributed to this demand surge. However, concerns about the future of platinum demand lingered, especially as the market for electric vehicles, which do not require platinum, continued to grow, albeit at a slightly slower pace than previously anticipated.

Despite these demand factors, the overall price movement was restrained by the large stockpiles of platinum that had accumulated in recent years. These inventories, which remained substantial even in the face of a supply deficit, created a buffer that prevented significant price increases. Investors were cautious, buying platinum when prices fell but hesitating to push prices higher, reflecting uncertainty about future demand, particularly from the automotive sector.

On the supply side, platinum production saw some increase in early 2024, particularly from South Africa, the world's leading producer. However, overall supply remained constrained, with risks expected to persist throughout the year. Recycling of platinum, particularly from autocatalysts, provided a stable but limited supply, further highlighting the challenges in meeting the growing demand.

Investment demand for platinum also showed mixed trends. While exchange-traded funds (ETFs) saw outflows in the previous year, the first quarter of 2024 witnessed a modest reversal, with some inflows into ETFs and increased interest in platinum bars and coins. This shift indicated cautious optimism among investors, although the market was still weighed down by the overhang of existing inventories.

Analyst Insight

According to Procurement Resource, the price of Platinum is expected to remain in the north zone as the market suggests potential for price increases, the substantial stockpiles and investor caution are likely to continue exerting downward pressure on prices. The market remains in a delicate balance, with any significant price movements depending on how quickly these inventories deplete and whether industrial demand continues to outpace supply.
 

Platinum Price Trend for the Second Half of 2023

Platinum prices were observed to be rising during the second half of the year 2023. Increased demand and stagnant supplies pushed the price graph in an upward direction. As per the World Platinum Investment Council, the total platinum demand is expected to show a whopping 24% year-on-year rise.

So, the council described it as a global platinum deficit during the said period, this rise in demand when the supplies are dwindling caused prices to head up. These demands are coming from various downstream sectors.

The steadily recovering automobile sector drove the demand upswing with an approx—6% rise in light-duty and a 7% rise in heavy-duty vehicle production. The Chinese government implemented stricter emission standards which led to an increased integration of platinum group metals (PGMs) coated particulate filter systems.

On the other hand, the refined mine production of platinum has dialed down by approx.—4% over the last year. The recycling volumes have also come down. Because of this gap between supply and demand dynamics the global platinum prices rose throughout the said period.

Analyst Insight

According to Procurement Resource, Platinum prices are expected to rise further in the coming months as dictated by the current supply and demand outlooks.
 

Platinum Price Trend for the First Half of 2023

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In the first two quarters of 2023, the platinum market witnessed a price decline due to the economic downturn and slower growth rate observed in China.

On the other hand, despite this, demand for platinum from investors, car manufacturers, and industries remained strong, as it was driven in part by the substitution of palladium with platinum in gasoline after-treatment systems.

In the US markets, the supply constraints were caused by reduced mine production and high uncertainties in South Africa's electricity availability. A similar trend was seen in the European countries also. Due to the unfavorable market dynamics, the spot FD prices of platinum in Europe fell from approximately 1061 USD/troy ounce in January’23 to almost 981 USD/troy ounce in June’23.

In addition to this, the current sluggish world economy has led to subdued demand for platinum and other key materials that are used in car manufacturing. Further, the reduced car sales, along with the adoption of alternatives in electric vehicles, have further dampened demand for platinum and related metals.

Analyst Insight

According to Procurement Resource, the price of Platinum is expected to depict an oscillating trend as the demand for platinum is moving in the upward direction, but the current market dynamics are hampered by the slow movement of the economy and the decline in the number of sales of the automotive sector are challenging the growth of platinum price trend.

Procurement Resource provides latest prices of Platinum. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.