South Africa’s rising increase in recycled platinum set to add to global supply

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The rise in South African and North American recycled platinum will keep the global market in an oversupplied position.

The forecast issued by World Platinum Investment Council for 2019, a body set up by South Africa’s platinum mining companies, noted a market surplus of 375,000oz of the metal, down from the previous year’s 670,000oz of oversupply.

The council, which issues market data compiled by SFA Oxford, noted total platinum supply would rise 4 percent to 8.37 million ounces on the back of higher mined production, as well as recycled material coming from autocatalytic devices used in diesel engine exhausts.

Recycled platinum will rise 3 percent to 1.995 million ounces, of which autocatalysts will contribute 1.495 million ounces, a 5 percent increase.

Platinum demand would rise 8 percent to 7.995 million ounces on the back of higher investment demand, which will offset falls in the other three key areas of consumption, being autocatalysts, jewellery and industrial applications.

Investment demand was forecast to jump by 785,000oz.

South Africa was forecast to deliver 4.565 million ounces out of the 6.189 million ounces of total mined supply in 2019, the country’s highest output since 2015. South Africa is the world’s largest producer of platinum.

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