- The World Platinum Investment Council reports that automotive demand for platinum this year will reach its highest level since 2017 and now forecasts a platinum deficit of over one million ounces for 2023.
While automotive demand for platinum continues to be driven primarily by platinum-for-palladium substitution, which is forecast to reach 615 koz in 2023, and higher loadings, it has received a boost from “higher-than-expected” growth in vehicle production during the second quarter of 2023, the council said.
According to WPIC, in North America, vehicle production improved by 15% year-on-year in Q2 2023, while in Europe, platinum automotive demand increased by 11% on the back of strengthening LDV production which also increased 11% year-on-year. “Despite challenging macroeconomic conditions and cost of living concerns, demand for new vehicles exceeded supply, which supported higher production rates,” WPIC wrote.