Platinum Perspectives

7 February 2025: Trump’s policies and the PGM markets Part 3: Rolling back environmental commitments and ‘Drill, baby, drill!’: 7 February 2025: Trump’s policies and the PGM markets Part 3: Rolling back environmental commitments and ‘Drill, baby, drill!’: Trump’s reductions of the US’s environmental commitments and “green” incentives, as well as his focus on increasing oil production, are expected to be net positive to PGM demand. Slower US BEV adoption increases PGM demand with each 1% reduction in BEV market share increasing 2E PGM demand by 25 koz per annum, which should more than offset any platinum demand lost from the US’s hydrogen plans.

3 February 2025: Trump’s policies and the PGM markets Part 2: A number of potential headwinds for platinum demand and pricing: 4 February 2025: Trump’s policies and the PGM markets Part 2: A number of potential headwinds for platinum demand and pricing: Trump’s economic policies are, in aggregate, expected to be negative for near-term platinum demand and prices. Protectionist activities and tariffs are viewed as inflationary, which is likely to lead to a slowdown in the FED’s rate cutting trajectory and support a stronger US dollar. We note that our Platinum Price Attribution Model (PPAM), highlights the inverse relationship of platinum prices with the US 10-year yield and US$:ZAR exchange rate respectively. Inflation will also pressure consumers’ pockets, which could negatively impact platinum demand from the automotive and jewellery sectors, where demand is positively correlated to the platinum price (per our PPAM).

24 January 2025: Trump’s policies and the PGM markets Part 1: US trade tariffs could reduce Pt and Pd demand by 1% and 4%: 24 January 2025: Trump’s policies and the PGM markets Part 1: US trade tariffs could reduce Pt and Pd demand by 1% and 4%: Trump’s threat to enact trade tariffs is causing tension in the platinum markets. This Platinum Perspectives addresses the potential negative impact of tariffs, which could reduce annual platinum demand by 100 koz or 1% of total demand if 25% tariffs are placed onto Canadian and Mexican automotive imports. In two upcoming Platinum Perspectives, we will discuss the impact on PGM demand from 1) Trump’s policies on emission standards and “green” incentives, and 2) the broader economic impact of Trump’s policies.

28 November 2024: Platinum’s positive price seasonality may be accentuated by recycling supply risks through early 2025: 28 November 2024: Platinum’s price seasonality may be accentuated by recycling supply risks through 2025: Over the past 25 years, the platinum price has shown the strongest positive price seasonality from December to February. This trend corresponds to seasonally weak mining supply as South African producers return from the year-end holiday period. Heading into 2025, historic seasonality may be accentuated if the projected recovery in recycled platinum supply continues to be deferred, as has been seen in previous years.

15 October 2024: Can platinum market deficits be met by ETFs? Yes, but only at much higher prices. : 15 October 2024: Platinum ETFs could be a source of supply to help meet forecast significant market deficits, but only at much higher prices: A common assumption is that platinum prices will not respond to consecutive years of market deficits since exchange traded fund (ETF) disposals will offset metal shortfalls. While ETFs can act as a source of supply, it is incorrect to assume holders are price agnostic as they are looking to make a return on investment and will look to sell at a level above their cost of acquisition. Based on historic palladium market behaviour, platinum ETF disposals may occur if prices are above the US$1,100/oz weighted average cost of ETF holdings, but large disposals will require much higher platinum prices.

15 August 2024: Policy certainty is accelerating hydrogen electrolyser approvals and supporting platinum’s investment case : 14 August 2024: Policy certainty is accelerating hydrogen electrolyser approvals and supporting platinum’s investment case: In the past month, four large-scale European electrolyser projects (>100 MW) have passed their final investment decisions (FID) following clear policy setting and growing government funding. This has seen the amount of European electrolysis capacity reaching FID increase by c.33%. Industry confidence in green hydrogen continues to grow; WPIC forecasts hydrogen-linked platinum demand to grow from c.40 koz in 2023 to 476 koz by 2028f. The hydrogen economy is a substantial new end market for platinum, reinforcing the demand strength of platinum’s investment case.

18 July 2024: Shanghai Platinum Week 2024: Key take aways from China’s dynamic platinum market: 18 July 2024: Shanghai Platinum Week 2024: Key take aways from China’s dynamic platinum market: China is the largest consumer of PGMs globally, however, it remains an opaque market to the rest of the world. Equally, China’s domestic PGM users do not have a good understanding of international market dynamics including supply chains in the rest of the world. Shanghai Platinum Week (SPW) presents a unique opportunity for a global gathering of PGM industry stakeholders. This report highlights insights of the conference and associated site visits, which will have an influence on our understanding of the Chinese PGM market. The conference itself was attended by more than 500 in-person delegates, with the live stream feed watched by an aggregate of more than 770 thousand people! The key takeaways from SPW reinforced platinum’s strong investment case, as challenges weigh on supply while demand finds support across a diverse number of end-uses, which emphasise some of the dynamic PGM trends within China. Our research team is available to discuss these and other findings in more detail.

19 June 2024: Politics and policy changes could further benefit the investment case for platinum : 19 June 2024: Politics and policy changes could further benefit the investment case for platinum: Recently announced US and EU tariffs on Chinese vehicle imports, as well as changes to the European and South African political landscape, could further support the positive investment case for platinum. Automotive PGM demand could remain higher for longer if BEV tariffs and weaker green legislation slow BEV uptake in the large US and EU vehicle markets. While SA PGM mine supply may reduce further from the economic liberalisation and reforms that a government of national unity could provide.

4 June 2024: Any delays to forecast recycling recovery will prolong larger deficits in the palladium market: 30th May 2024: Any delays to forecast recycling recovery will prolong larger deficits in the palladium market: WPIC forecasts deficits for 2024 and 2025, followed by surpluses from 2026 onwards. The transition to surplus is contingent on a significant increase to recycling, predicated on a number of existing recycling challenges being resolved. Any delays to solving these could slow the pace of the anticipated growth in recycling supply, resulting in deeper and more persistent deficits in the short to medium term. This could in turn feed into value expectations and provide upward support for the palladium price, especially in the context of any potential short covering rallies.

17 May 2024: London Platinum Week’s key themes risk deepening deficits, supporting the compelling investment case: 17 May 2024: London Platinum Week’s key themes risk deepening deficits, supporting the compelling investment case: London platinum week was dominated by two themes, downside risks to recycling supply, and higher-for-longer automotive PGM demand stemming from ICE containing vehicles (mainly hybrids), compensating for slowing battery electric vehicle (BEV) growth. Both topics are ones we have highlighted previously, and both have the potential to deepen the ongoing market deficits forecast through 2028. There was equally interesting insight from what was not widely discussed, namely mine supply and hydrogen, both now considered to be longer-term in their impact.