New Report Says Platinum Demand Will Outstrip Supply in 2026
A new report by Johnson Matthey, a group focusing on sustainable technologies, indicates that the demand for platinum is again going to exceed the available supply in 2026. This is largely due to constrained mine production amid robust demand among industrial users of the metal. In contrast, PGMs like rhodium and palladium are set to record a marginal surplus in 2026.
The report indicates that PGMs like palladium, rhodium, and platinum that are used as autocatalysts have been registering deficits due to reduced supply by the leading producers.
The authors of the report point out that recycling in the autocatalyst segment hasn’t recovered quickly enough from the decline it suffered between 2023 and 2024, while at the same time the production of PGMs in South African mines has reduced due to factors like mine closures and rationalization.
Industrial demand for PGMs has stayed robust, particularly within the electronics and petrochemicals segments. Internal combustion engine vehicle manufacturing has also remained resilient despite earlier forecasts that electrification would significantly lower ICE vehicle production.
The Johnson Matthey report indicates that in 2024, the shortfall between platinum supply and demand was 559,000 ounces, and this deficit increased to 951,000 ounces last year. While 2026 is also forecast to record a deficit in supply, the projected volume will be approximately 317,000 ounces, a much smaller fraction of the deficit recorded last year.
The authors of the report point out that it isn’t easy to forecast the near-term direction of the PGM market because of the current conflict in the Middle East, growing cases of resource nationalism and uncertainties about the trade policy of the U.S.
Johnson Matthey says PGM demand is expected to contract this year, except for the demand for iridium. The demand contraction will be driven by reduced ICE vehicle production, and contraction in demand within the investment and jewelry segments. However, the industrial use of PGMs is forecast to remain strong, though risks due to shipping disruptions could pose some downside potential.
PGM production is forecast to drop, particularly in Russia. However, rapid growth in recycling within the autocatalyst segment could offset some of the supply shortages caused by reductions in primary PGM production. Additionally, the report shows that the production of platinum in North America is forecast to record a modest increase, further stabilizing the reduced production in South Africa and Russia.
All in all, the market outlook remains bullish for PGMs, and producers like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) can look forward to ongoing favorable market conditions.
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A new report by Johnson Matthey, a group focusing on sustainable technologies, indicates that the demand for platinum is again going to exceed the available supply in 2026. This is largely due to constrained mine production amid robust demand among industrial users of the metal. In contrast, PGMs like rhodium and palladium are set to record a marginal surplus in 2026.
The report indicates that PGMs like palladium, rhodium, and platinum that are used as autocatalysts have been registering deficits due to reduced supply by the leading producers.
The authors of the report point out that recycling in the autocatalyst segment hasn’t recovered quickly enough from the decline it suffered between 2023 and 2024, while at the same time the production of PGMs in South African mines has reduced due to factors like mine closures and rationalization.
Industrial demand for PGMs has stayed robust, particularly within the electronics and petrochemicals segments. Internal combustion engine vehicle manufacturing has also remained resilient despite earlier forecasts that electrification would significantly lower ICE vehicle production.
The Johnson Matthey report indicates that in 2024, the shortfall between platinum supply and demand was 559,000 ounces, and this deficit increased to 951,000 ounces last year. While 2026 is also forecast to record a deficit in supply, the projected volume will be approximately 317,000 ounces, a much smaller fraction of the deficit recorded last year.
The authors of the report point out that it isn’t easy to forecast the near-term direction of the PGM market because of the current conflict in the Middle East, growing cases of resource nationalism and uncertainties about the trade policy of the U.S.
Johnson Matthey says PGM demand is expected to contract this year, except for the demand for iridium. The demand contraction will be driven by reduced ICE vehicle production, and contraction in demand within the investment and jewelry segments. However, the industrial use of PGMs is forecast to remain strong, though risks due to shipping disruptions could pose some downside potential.
PGM production is forecast to drop, particularly in Russia. However, rapid growth in recycling within the autocatalyst segment could offset some of the supply shortages caused by reductions in primary PGM production. Additionally, the report shows that the production of platinum in North America is forecast to record a modest increase, further stabilizing the reduced production in South Africa and Russia.
All in all, the market outlook remains bullish for PGMs, and producers like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) can look forward to ongoing favorable market conditions.
Please see full terms of use and disclaimers on the Rocks & Stocks website applicable to all content provided by R&S, wherever published or re-published: https://RocksAndStocks.news/Disclaimer
