Platinum demand will exceed supply
by the most since 1999 this year as more industrial purchases
and investment outweigh slower buying by jewelers and carmakers,
Johnson Matthey Plc (JMAT) said. Palladium’s shortfall will narrow as
consumption falls faster than supply.
While car manufacturers will buy less platinum for the
first time since 2009, more demand from chemical, electrical and
glass industries and record investment will widen the shortage
by 78 percent to 605,000 ounces, London-based Johnson Matthey
said today in a report. Palladium’s deficit will narrow 36
percent to 740,000 ounces as less electrical, jewelry and
investment demand outweighs the biggest ever purchases for metal
used in catalytic converters and lower Russian stockpile sales. The metals outperformed gold and silver this year on speculation improving economies will boost demand for materials used in car pollution control devices. Lower supply from South Africa because of mine strikes and cutbacks and falling sales from Russian government palladium inventories helped keep the commodities in a shortage since 2012. The deficits will probably continue next year, Johnson Matthey said.
