Johnson Matthey publishes latest PGM Market Report, 2022
London (ots/PRNewswire) - The platinum market should move closer to balance in
2022, according to Johnson Matthey's latest PGM Market Report. This provides an
overview of demand for platinum group metals in 2021 and an outlook for 2022, in
advance of the annual London Platinum & Palladium Market week.
Platinum demand growth will be driven by rising consumption in catalysts for
heavy duty trucks, and increased use of platinum (in place of palladium) in
gasoline autocatalysts. South African platinum supplies will contract by 9%,
with plant maintenance at the country's two largest PGM refiners, and mining
activity hit by operational challenges. Industrial demand will remain robust,
although it will retreat from the record levels seen in 2021 when Chinese glass
companies purchased unusually large quantities of platinum.
2022, according to Johnson Matthey's latest PGM Market Report. This provides an
overview of demand for platinum group metals in 2021 and an outlook for 2022, in
advance of the annual London Platinum & Palladium Market week.
Platinum demand growth will be driven by rising consumption in catalysts for
heavy duty trucks, and increased use of platinum (in place of palladium) in
gasoline autocatalysts. South African platinum supplies will contract by 9%,
with plant maintenance at the country's two largest PGM refiners, and mining
activity hit by operational challenges. Industrial demand will remain robust,
although it will retreat from the record levels seen in 2021 when Chinese glass
companies purchased unusually large quantities of platinum.
Johnson Matthey's report shows that the palladium and rhodium markets could move
back into deficit in 2022, with lower South African supplies and downside risks
to Russian shipments. Demand growth will be constrained by weak vehicle output,
and cost-saving programmes by auto and industrial consumers. High prices have
triggered significant thrifting by Chinese automakers, increased substitution of
palladium with platinum in gasoline autocatalysts, and reductions in rhodium use
by glass companies. Prices for both metals remained strong during the first four
months of 2022, with palladium climbing to an all-time high of over $3,300 in
March as supply concerns intensified.
Rupen Raithatha, Market Research Director at Johnson Matthey, commented: "We
expect weak car output to moderate PGM demand growth in 2022. In recent months
we've seen repeated cuts to vehicle production forecasts, due to semiconductor
shortages and supply chain disruption. There could be further downgrades to
come, especially in China, where Covid disruption led to stoppages at some car
plants during April. However, PGM supplies are also under pressure, with Russian
shipments facing logistical and commercial hurdles, and South African mines
losing production due to extreme weather, electricity shortages, safety
stoppages, and intermittent labour disruption."
Industrial demand for platinum is forecast to fall short of 2021's record level,
because some of the platinum required for this year's fibreglass expansions was
acquired in advance. However, platinum consumption by the glass industry should
remain robust by historical standards, reflecting the growing role of glass
fibre reinforced materials in carbon reduction applications such as vehicle
lightweighting and wind power. In contrast, glass sector demand for rhodium will
be weak, with glass companies further reducing the rhodium content of alloys
back into deficit in 2022, with lower South African supplies and downside risks
to Russian shipments. Demand growth will be constrained by weak vehicle output,
and cost-saving programmes by auto and industrial consumers. High prices have
triggered significant thrifting by Chinese automakers, increased substitution of
palladium with platinum in gasoline autocatalysts, and reductions in rhodium use
by glass companies. Prices for both metals remained strong during the first four
months of 2022, with palladium climbing to an all-time high of over $3,300 in
March as supply concerns intensified.
Rupen Raithatha, Market Research Director at Johnson Matthey, commented: "We
expect weak car output to moderate PGM demand growth in 2022. In recent months
we've seen repeated cuts to vehicle production forecasts, due to semiconductor
shortages and supply chain disruption. There could be further downgrades to
come, especially in China, where Covid disruption led to stoppages at some car
plants during April. However, PGM supplies are also under pressure, with Russian
shipments facing logistical and commercial hurdles, and South African mines
losing production due to extreme weather, electricity shortages, safety
stoppages, and intermittent labour disruption."
Industrial demand for platinum is forecast to fall short of 2021's record level,
because some of the platinum required for this year's fibreglass expansions was
acquired in advance. However, platinum consumption by the glass industry should
remain robust by historical standards, reflecting the growing role of glass
fibre reinforced materials in carbon reduction applications such as vehicle
lightweighting and wind power. In contrast, glass sector demand for rhodium will
be weak, with glass companies further reducing the rhodium content of alloys
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