RECYCLED platinum will be the main source of a 3% increase in supply of the metal, with output declining from SA, the largest single source of platinum, according to the World Platinum Investment Council.
While recovering from a strike in 2014, South African refined platinum output had bounced back to 4.39-million ounces last year, in line with the 2013 total of 4.35-million ounces, the council said in its latest report.
Despite planned output in SA expected to rise 3% to 4.535-million ounces this year, the council adjusted its forecast for the country’s supply down to 4.31-million ounces "for potential disruption — industrial action related to wage negotiations, safety stoppages, or shaft closure due to fire".
In contrast, metal from recycled platinum would balloon by 235,000oz this year, rising 14% to 1.96-million ounces. Recycling had a subdued performance last year, falling 15% to 1.73-million ounces, with reduced flows from scrapped autocatalysts due to a combination of lower platinum and steel prices. Jewellery recycling fell by a third as the platinum price retreated 28% in dollar terms.
Overall, the platinum market deficit is forecast to narrow to 135,000oz, the smallest in four years, with 2013 and 2014 deficits of 720,000oz. Demand is expected to dip 40,000oz to 8.165-million ounces this year, with lower industrial and investment demand offsetting growth in autocatalyst and jewellery manufacturing.
Investment was a story of two products last year, with total investment demand up 110,000oz to 260,000oz, with purchases of 480,000oz of coins and bars overshadowing a 240,000oz reduction in platinum-backed exchange-traded funds (ETF).
Japanese investors took advantage of low prices to buy, marking record fourth quarter buying of bars and ETFs.
Platinum in ETF products fell to 2.51-million ounces last year, with record sales of 343,000oz of platinum ETFs by South African investors, dragging it off its record high of 2.93-million ounces at the end of August.
Picture: THINKSTOCK
RECYCLED platinum will be the main source of a 3% increase in supply of the metal, with output declining from SA, the largest single source of platinum, according to the World Platinum Investment Council.
While recovering from a strike in 2014, South African refined platinum output had bounced back to 4.39-million ounces last year, in line with the 2013 total of 4.35-million ounces, the council said in its latest report.
Despite planned output in SA expected to rise 3% to 4.535-million ounces this year, the council adjusted its forecast for the country’s supply down to 4.31-million ounces "for potential disruption — industrial action related to wage negotiations, safety stoppages, or shaft closure due to fire".
In contrast, metal from recycled platinum would balloon by 235,000oz this year, rising 14% to 1.96-million ounces. Recycling had a subdued performance last year, falling 15% to 1.73-million ounces, with reduced flows from scrapped autocatalysts due to a combination of lower platinum and steel prices. Jewellery recycling fell by a third as the platinum price retreated 28% in dollar terms.
Overall, the platinum market deficit is forecast to narrow to 135,000oz, the smallest in four years, with 2013 and 2014 deficits of 720,000oz. Demand is expected to dip 40,000oz to 8.165-million ounces this year, with lower industrial and investment demand offsetting growth in autocatalyst and jewellery manufacturing.
Investment was a story of two products last year, with total investment demand up 110,000oz to 260,000oz, with purchases of 480,000oz of coins and bars overshadowing a 240,000oz reduction in platinum-backed exchange-traded funds (ETF).
Japanese investors took advantage of low prices to buy, marking record fourth quarter buying of bars and ETFs.
Platinum in ETF products fell to 2.51-million ounces last year, with record sales of 343,000oz of platinum ETFs by South African investors, dragging it off its record high of 2.93-million ounces at the end of August.
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