Demand for platinum, palladium, and rhodium is set to outstrip supply in 2024, according to Johnson Matthey’s latest PGM Market Report. The report, released ahead of the London Platinum & Palladium Market week, predicts deficits in all three markets, with platinum facing its largest supply shortfall in a decade.
The decline in primary supply of platinum, mainly due to disruptions in Russia and restructuring by major PGM miners in South Africa, will contribute to the deficit. Despite a slight contraction in automotive platinum use, overall demand remains strong, with industrial consumption supported by investments in the glass industry.
On the other hand, the palladium and rhodium markets are expected to see smaller deficits in 2024, as automotive demand decreases and global gasoline car production slows down. However, increased recycling efforts in the automotive sector could help balance out the deficit to some extent.
Rupen Raithatha, Market Research Director at Johnson Matthey, noted that although deficits are expected, the markets remain liquid due to excess PGM inventory held by consumers in previous years. Furthermore, the report highlights the importance of PGM applications in environmental protection, energy efficiency, and CO2 emissions reduction.
In a special report, ‘The PGM opportunity,’ Johnson Matthey emphasizes the crucial role that platinum, palladium, and rhodium will play in the energy transition as the decline in internal combustion engine vehicle production creates more favorable pricing conditions for these metals. The company plans to focus on developing new PGM applications to fully exploit the potential of these valuable metals.
Overall, the outlook for platinum, palladium, and rhodium remains positive in 2024, with opportunities for growth and innovation in various industries driven by the unique properties of these metals. Collaboration within the PGM industry will be key to unlocking the full potential of these essential materials.
