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During 2023, platinum has benefited from stellar industrial demand to reach a record level, with 2024 heading for the third-highest industrial demand spot.

Today's publication of the platinum quarterly of World Platinum Investment Council (WPIC) also states that there has also been a strong 14% recovery in automotive production and, of most significance, ongoing growth in platinum-for-palladium substitution.

The platinum deficit trend continues, with a shortfall of 353 000 oz forecast for 2024, and this year's deficit going beyond the one-million-ounce mark.

Both mining and recycling supply are expected to be well below pre-Covid levels in 2023 and 2024 and investment demand is forecast to remain positive in next year.

WPIC research director Edward Sterck outlined to Mining Weekly aspects around exceptionally strong year-on-year demand growth of 26% as well as far-reaching aspects of the industrial demand growth and the forces that are at play when it comes to investment in platinum. (Also watch attached Creamer Media video.)

Regarding the sectors that helped industrial demand for platinum to soar sky-high, Sterck had this to say: "Probably the number one sector to highlight would be the glass sector. Platinum is used in a platinum/rhodium alloy that's used in the glass bushings for the production of fiberglass. It's also used in the casting vessels for fiberglass and for high-quality liquid-crystal display (LCD) screens.

"Now, that's really been one of the big drivers of the increase in demand for 2023. We do see things easing up a bit for 2024, but that's still the third-highest year for industrial demand on record," said Sterck.

"Just specifically for the glass sector, it's worth noting that we're expecting a doubling of installed wind turbine capacity between now and 2030, which is quite a significant increase, and the blades for those wind turbines will largely be made of fiberglass that requires the platinum-containing facilities for the manufacturing of the fibreglass that goes into those.

"Other sectors that are worth noting include the medical sector, which is continuing to grow at a fairly steady pace. Additionally within the industrial categories, we have electrolysers and stationary fuel cells. This is related to green hydrogen, and whilst it's starting off from a small base, it is growing pretty quickly - with proton exchange membrane electrolysers, which contain platinum catalysts for the production of green hydrogen, and then also stationary fuel cells, which contain platinum catalysts for taking the green hydrogen as an energy carrier and using it to generate electricity."

Industrial demand for 2023 is predicted to surge by 14% year-on-year (317 000 oz) reaching 2 652 000 oz - marking the strongest year on record.

Glass demand lifted by more than 50%, or 251 000 oz, and the chemical sector by 10%, or 68 000 oz-plus. While industrial demand is forecast to fall 11% in 2024, it will nevertheless be the third-highest level on record at 2 367 000 oz.

Mined supply is expected to remain low in 2023, and will increase by just 3% next year in 2024. What are the factors behind this, and how long is supply likely to remain constrained?

In 2023, mine supply has been held back to a degree by planned maintenance, mainly in downstream processing infrastructure in South Africa, as well as, more at the beginning of the year, the impacts of the ongoing challenges that Eskom's facing, and the shortage of electricity supply. Those problems seem to have eased a bit, and certainly the miners have done a good job of managing the challenges that the electricity shortages have presented. But looking into next year, it's predominantly a result of just further planned infrastructure. Nornickel, the Russian nickel and palladium mining and smelting company, has a large smelter rebuild that was originally planned to be conducted in the fourth quarter of this...