Platinum Supply and Demand Imbalance Explained
Platinum is a shiny, rare metal used in cars, jewelry, and factories around the world. Right now, in 2025, there is not enough platinum to meet demand. Experts predict a shortage of 692 thousand ounces this year, which is about 9 percent of what people want to buy.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.html This gap means supply cannot keep up, pushing prices higher.
Supply comes mostly from mining in South Africa, which makes up about 70 to 80 percent of the world’s platinum. Mines there face big problems like power cuts, worker strikes, and not enough new digging sites.https://www.leadlagreport.com/p/platinums-perfect-storm-why-selecthttps://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it Total supply in 2025 is expected to drop 2 percent from last year to 7,129 thousand ounces. Mining output will fall 5 percent because companies cannot pull from extra stockpiles like they did in 2024. Recycling helps a bit, rising 7 percent as higher prices make it worth collecting old platinum, but it is not enough to fix the drop in new mining.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
Demand is still strong at 7,821 thousand ounces for 2025, down just 5 percent from 2024. Cars use the most platinum in parts called catalytic converters to clean exhaust. Slower sales of electric vehicles mean more people keep buying cars with these converters.https://www.leadlagreport.com/p/platinums-perfect-storm-why-select Jewelry demand is up, especially in China where people want cheaper options than gold. Factories use platinum in glass making, chemicals, electronics, and new hydrogen tech, though some areas like glass are down this year due to less building.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it Investors are buying platinum too, as a safe bet against rising prices and world troubles.https://fortune.com/article/current-price-of-platinum-12-16-2025/
Old stockpiles of platinum above ground have run low after years of shortages. This makes the market feel even tighter, with places like London, the US, and China all pulling for the same metal.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it In the third quarter of 2025, supply stayed flat while demand jumped 28 percent, creating a 179 thousand ounce gap just that quarter.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Prices have climbed over 77 percent this year, hitting $1,813 per ounce by mid-December, the biggest jump since 2008.https://fortune.com/article/current-price-of-platinum-12-16-2025/
This is the third year in a row of big shortages. South Africa mine issues and steady demand keep the imbalance going.https://www.nasdaq.com/articles/edward-sterck-platinum-deep-deficit-again-will-price-keep-rising-2026https://www.miningweekly.com/article/balanced-2026-platinum-market-forecast-dependent-on-global-trade-tension-let-up-2025-11-18
Sources
https://plati