Editor’s Note: With the market so volatile, stay tuned for the daily news! Get our roundup of today’s must-read news and expert opinions in minutes. Register here!
(Kitco News) – The platinum market should move closer to equilibrium in 2022, according to Johnson Matthey’s latest platinum group metals market report.
Growth in demand for platinum will be driven by higher consumption of heavy-duty vehicle catalysts and increased use of platinum (instead of palladium) in gasoline autocatalysts, writes Johnson Matthey.
“Platinum supply in South Africa will fall by 9% as maintenance and production at the country’s two largest PGM wastewater treatment plants are hit by operational problems. Industrial demand will remain strong, although it will recover from a 2021 record set by Chinese glass companies. levels bought an unusually large amount of platinum, ”the authors of the report write.
“Palladium and rhodium markets could return to deficit in 2022, according to a Johnson Matthey report, as supplies from South Africa decline and supplies from Russia face downside risks. industries consumption.
Prices for both metals remained strong in the first four months of 2022, with palladium climbing to a record high of over $3,300 in March as supply concerns intensified, writes Johnson Matthey.
Johnson Matthey warned that high prices for platinum group metals have forced Chinese automakers to make big savings. For example, palladium is increasingly being replaced in gasoline autocatalysts, and glass companies are using less rhodium.
Rupen Raitata, marketing research director at Johnson Matthey, warned that demand will continue to weaken.
“We expect weaker auto production in 2022 to contain growth in demand for platinum group metals. In recent months, we have seen repeated downward revisions to auto production forecasts due to semiconductor shortages and supply chain disruptions,” Raitata said. “Further downgrades are likely to follow, especially in China, where some auto factories closed in April due to the Covid-19 pandemic. Africa is shutting down due to extreme weather, power shortages, safety shutdowns and occasional workforce interruptions.”