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

The global platinum market is expected to become surplus for the first time since 2022 this year, according to the World Platinum Investment Council (WPIC). This shift stems from weaker investment and jewelry demand, which has pulled down spot platinum prices by 10% this year to $1,840 per troy ounce. The Middle East conflict and expectations of higher interest rates have stalled momentum in a gold-led rally that pushed platinum prices to a record high of $2,919 per ounce in January 2025.

The WPIC now anticipates a surplus of 265,000 troy ounces for the year, a significant turnaround from the 297,000 ounces deficit it forecasted three months ago. This change is primarily attributed to outflows from platinum-backed exchange-traded funds (ETFs) during the first half of the year, when the surplus peaked at 548,000 ounces.

Edward Sterck, head of research at WPIC, noted that the market returned to deficit conditions in the second half of 2025 as ETF selling reached its bottom and experienced some modest buying over the past few weeks.

Support to platinum prices will come from relatively low above-ground stocks, unallocated vaulted inventory available to balance the market, which has been reduced by three previous years of market deficits to around 14 weeks of demand. Platinum demand fell 16% year-on-year in the second quarter to 1.7 million ounces, with net investment outflows of 121,000 ounces and a 32% decline in jewelry demand, driven by higher prices and weaker demand, particularly in China. Meanwhile, the auto sector saw a 6% drop in demand.

On the supply side, total platinum supply increased by 1% year-on-year to 1.9 million ounces, with recycling contributing to a 9% rise.