A newly released third quarter report issued by the World Platinum Investment Council suggests a worldwide platinum surplus for 2018.
The projection is in sharp contrast to an earlier released report predicting a deficit in the precious metal through 2021.
The most recent report projects the surplus to reach 505,000 ounces, up from 295,000 ounces, primarily the result of weakened jewelry demand. The 2019 market forecast is introduced with a market surplus of 455,000, reflecting increases of 2 percent in both supply and demand.
Against an overall supply at 1,850,000 ounces of platinum, overall platinum demand reached 1,975,000 ounces during the first quarter of 2018, from automotive, jewelry, industrial and investment sectors, creating a 125,000-ounce supply deficit.
Total mining supply was recorded as 1.4 million ounces during the first quarter of 2018, with South Africa leading the way at 985,000 ounces. The mining supply was 220,000 fewer ounces than the 1.62 million ounces reported as the fourth quarter 2017 mining supply total.