Platinum market to post first annual surplus since 2022 on investment outflows, WPIC says

LONDON: The global platinum market will swing to a surplus for the first time since 2022 this year due to weaker investment and jewellery demand, the World Platinum Investment Council said.

Spot platinum prices are down 10% so far this year to $1,840 per troy ounce as the Middle East conflict and bets on higher interest rates stalled momentum in a gold-led rally that drove platinum up 127% in 2025 to a record high of $2,919 per ounce in January.

The WPIC currently expects the surplus in the platinum market at 265,000 troy ounces this year compared with a 297,000 ounces deficit it estimated three months ago.

The shift is mainly due to outflows from the platinum-backed exchange-traded funds that occurred during the first half of the year, when the surplus touched 548,000 ounces, said Edward Sterck, head of research at the WPIC.

 The market effectively returned to deficit conditions in the second half of 2026 as ETF selling has bottomed out and saw some modest buying over the last few weeks, Sterck added.

Providing support to platinum prices, from the WPIC’s point of view, will be relatively low above-ground stocks - unallocated vaulted inventory available to balance the market - reduced by three previous years of market deficit to around 14 weeks of demand.

In the second quarter, platinum demand fell 16% year-on-year to 1.7 million ounces, with net investment outflows of 121,000 ounces and a 32% drop in jewellery demand, led by higher prices and weaker demand in China.

Demand from the auto sector fell by 6%.

At the same time, total platinum supply rose 1% year-on-year to 1.9 million ounces due to a 9% increase in recycling.