#Platinum group metals outlook: constrained supply, very strong demand growth – WPIC $PPLT

The outlook for platinum group metals (PGMs) is one of constrained supply and very strong demand growth. “You’ve got the entire PGMs suite that is short and that certainly will translate into tight markets,” World Platinum Investment Council (WPIC) Director of Research Trevor Raymond told Mining Weekly in a Zoom interview on Monday. (Also watch attached Creamer Media video.)

“The most material driver is the substitution of palladium by platinum. I think we’re starting to see widespread recognition that it’s happening but it’s still proprietary and confidential. We’re starting to see estimates of anything between one and one-and-a-half-million ounces of substitution, people are saying, by 2025. It’s our view that it’s happening a lot quicker and will be a lot sooner. But that’s quite a material growth. You're looking at another one-million ounces within four years in the platinum market. That’s pretty strong demand,” he said.

“Also, the other thing that’s driving demand is investment.

People tend to want to not look at investment too seriously. But we’ve had a million ounces of exchange traded fund (ETF) demand in 2019 and another half-a-million ounces in 2020. Certainly, investors are believing that there’s likely to be platinum demand growth from substitution, from higher vehicle loadings and certainly from the recovery in the global economy. The investors have seen that this demand potential is strong. It’s the strongest I’ve seen in the last six years, since we've been doing what we do,” he added.

See the whole interview here: Platinum group metals outlook: constrained supply, very strong demand growth – WPIC