Platinum Market Concentration Risks Explained
Platinum is a shiny, rare metal used in cars, jewelry, and industry. Most of it comes from just two places: South Africa and Russia. This setup creates big risks for the platinum market. If something goes wrong in those countries, the whole world feels it. Let’s break it down simply.
South Africa makes about 70 to 90 percent of the world’s platinum. It has the biggest reserves and leads in mining output.https://www.cruxinvestor.com/posts/chinas-strategic-critical-mineral-classification-of-platinum-its-investment-implications-for-global-pgm-supply-pricing-and-emerging-developershttps://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-ithttps://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html Russia supplies around 11 percent, making it the number two producer.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it No other country comes close. This heavy reliance means buyers like car makers and jewelers depend on smooth operations there.
Problems in South Africa hit hard. Mines go deeper, costs rise, and power outages slow everything down. Labor issues and low ore quality add more trouble. These factors keep supply tight and push prices up.https://www.cruxinvestor.com/posts/chinas-strategic-critical-mineral-classification-of-platinum-its-investment-implications-for-global-pgm-supply-pricing-and-emerging-developershttps://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html Russia faces sanctions that disrupt metal flows to global markets.https://www.cruxinvestor.com/posts/chinas-strategic-critical-mineral-classification-of-platinum-its-investment-implications-for-global-pgm-supply-pricing-and-emerging-developershttps://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html Geopolitical tensions make it worse, as buyers worry about steady access.
This concentration leads to market squeezes. The world has seen three years of platinum shortages, or deficits, partly because of these issues. Stocks of platinum above ground are running low, making things even tighter.https://platinuminvestment.com/investment-research/perspectives/fear-of-section-232-outcome-in-the-us-is-key-to-pgm-trade-uncertainty-and-the-availability-of-exchange-stockshttps://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-ithttps://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html In 2025, the deficit hit 850,000 ounces. Lease rates, which show how costly it is to borrow platinum, spiked to record levels. Prices backwardate in over-the-counter trades, signaling scarcity.https://platinuminvestment.com/investment-research/perspectives/fear-of-section-232-outcome-in-the-us-is-key-to-pgm-trade-uncertainty-and-the-availability-of-exchange-stockshttps://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/
Big buyers feel the pinch. China, which uses 30 percent of platinum, calls it a critical mineral due to its import needs and low local supply. It started futures trading on the Guangzhou Futures Exchange to lock in metal and track demand better.