Commerzbank's Commodity Analyst Barbara Lambrecht highlights that the platinum market is drawing increased attention in London as the World Platinum Investment Council (WPIC) prepares to release its updated forecasts. According to Commerzbank, the WPIC is expected to project a fourth consecutive annual supply deficit for platinum this year, signaling ongoing tightness in the market [1].
The report notes that above-ground platinum inventories have already fallen significantly and now cover only four months of demand, compared to a year’s worth of consumption four years ago [1]. While the anticipated supply deficit for this year is likely to be smaller than in previous years—attributed to weaker demand from the automotive industry and for platinum jewelry—stocks are still expected to shrink further [1].
Commerzbank suggests that if the WPIC continues to forecast that supply will not keep pace with demand in the medium term, leading to a sustained drawdown of inventories, this scenario is likely to support platinum prices going forward [1]. No specific price targets or immediate market reactions are mentioned in the report.
CONCLUSION
The platinum market is expected to remain in deficit for a fourth consecutive year, with inventories shrinking to cover only four months of demand. This ongoing supply tightness is likely to underpin platinum prices, according to Commerzbank’s analysis.