September 6, 2017 / 5:01 AM / 9 months ago

Platinum market back in surplus in second quarter - WPIC

    * Platinum market posts 75,000 oz surplus in Q2
    * Overall deficit seen shrinking to 15,000 oz in 2017

    By Jan Harvey
    LONDON, Sept 6 (Reuters) - The platinum market edged back
into surplus in the second quarter, an industry report said on
Wednesday, as rising supply and a drop in automotive, jewellery
and industrial demand erased the previous quarter's
305,000-ounce shortfall.
    With investment, which held steady in the last quarter, also
expected to halve this year, the market is set to pull close to
balance in 2017 after years of deficit, the World Platinum
Investment Council said in its latest Platinum Quarterly report.
    The WPIC, which is funded by platinum mining companies, is
forecasting the deficit will shrink to just 15,000 ounces in the
full year from 390,000 in 2016, as demand from carmakers,
jewellers, industrial users and investors declines. 
    "The reason for the demand fall to create the balanced
market is mainly from industrial and investment," the WPIC's
director of research Trevor Raymond said. "There have been five
consecutive years of deficit," he added.  
    After hitting a more than seven-year low in 2016, platinum
prices have risen 10 percent this year, but have lagged a
broader rebound in precious metals - gold is up more than 15
percent and palladium around 45 percent in the same period.
    Automotive consumption, the biggest single demand segment
for platinum, which is used in catalytic converters, fell to
850,000 ounces in the second quarter, down 4 percent from the
first three months of the year, the WPIC said. 
    For the full year, it is forecasting a 2 percent drop in the
segment, with western Europe seeing the biggest percentage-terms
decline. Automotive demand has been hit by dwindling market
share of diesel cars in Europe, which use a heavier loading of
platinum than the gasoline fleet. 
    Jewellery demand is seen falling 1 percent, with China, the
single biggest market for platinum jewellery, forecast to post
an 8 percent drop. Other regions, notably India, are expected to
see higher demand, the WPIC said, however.
    "China jewellery is a little more than 55 percent (of global
jewellery demand), and together India and the United States are
20 percent," Raymond said. "Growth in 20 percent of the demand
has offset the weakness in China."
    Investment is tipped to drop sharply to 250,000 ounces, less
than half the previous year's total, due in part to a decline in
Japanese bar buying, which has been strong in recent years.
                    Q2 2017  Q1 2017  Q2 2016  2017 (f)  2016
 Mine supply          1,555    1,350    1,695     5,980   6,065
 Recycling              480      420      480     1,815   1,865
 TOTAL SUPPLY         2,035    1,770    2,175     7,795   7,930
 Automotive demand      850      890      865     3,360   3,435
 Jewellery demand       620      640      620     2,590   2,605
 Industrial demand      400      465      410     1,610   1,775
 Investment              90       80       90       250     505
 TOTAL DEMAND         1,960    2,075    1,985     7,810   8,320
 Balance                 75     -305      190       -15    -390
 Above-ground                                     1,930   1,915
    * Source: World Platinum Investment Council, Platinum
Quarterly Q2 2017

 (Reporting by Jan Harvey; Editing by Mark Potter)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below