Monday, June 24, 2019
News
NEWS HOME
»
PRN INDIA
Rising Auto Demand and Surge in Investment to Push Platinum Market Into Deficit, Says Johnson Matthey's Latest Pgm Market Report
  SocialTwist Tell-a-Friend  
   

- Platinum market to move into deficit in 2019 following a surge in investment buying  

- Automotive demand set to rise due to increased use of platinum catalysts on trucks  

LONDON, May 13, 2019 /PRNewswire/ -- After recording surpluses in 2017-18 the platinum market will move back into deficit this year, according to forecasts published in Johnson Matthey's latest Pgm Market Report.

A surge in investment buying and higher automotive consumption will underpin a nine percent gain in gross platinum demand in 2019, offsetting weakness in the Chinese platinum jewellery market, where platinum faces increased competition from karat gold jewellery.

Automotive demand for platinum will rise by three percent this year, due to greater platinum use on trucks. In China, platinum consumption on heavy duty vehicles will increase sharply, with strict China VI emissions legislation due to be implemented in some provinces and cities starting in July 2019. The new regulations will apply nationwide from July 2020, while India will also introduce strict emissions regulations for trucks next year.

South African platinum supplies have been flat for several years but could rise slightly in 2019, if producers can clear processing backlogs. However, there is some downside risk due to the potential for disruption from electricity shortages or strikes.

Alison Cowley, Principal Analyst at Johnson Matthey plc, commented: "Between mid 2018 and early 2019, the platinum price traded close to ten year lows while palladium set a series of all-time records. Some investors now think that platinum is under-priced, given the improving outlook for automotive demand and uncertainties over supply. This led to a dramatic turnaround in sentiment during the first quarter of 2019, when investors bought nearly 700,000 oz of platinum Exchange Traded Funds (ETFs). This seems to be net new investment, rather than investors switching out of palladium into platinum."

Palladium price reaches record highs on boom in automotive demand

  • Palladium market deficit to widen as autocatalyst demand climbs 9%
  • Price reaches record high of over $1,600 as selling by investors dries up

The palladium market deficit is forecast to widen significantly in 2019, with primary and secondary supplies unable to keep pace with the growth in automotive demand. Palladium ETF disinvestment helped balance the market in 2018 but remaining holdings are no longer sufficient to bridge the gap between supply and demand.

Rupen Raithatha, Market Research Director at Johnson Matthey, said: "ETF investors redeemed over 2.2 million oz of palladium holdings during the last four years. This helped to support market liquidity during a period of exceptional growth in automotive demand. However, persistent market deficits have had a real impact on the price, which reached a record high of over $1,600/oz in March 2019. Despite these high prices, ETF selling dried up in the first quarter of 2019, but we think there is still some potential for profit-taking this year."

Palladium use in autocatalysts is forecast to rise by nine per cent in 2019. China 6 emissions legislation will be enforced nationally in 2020, but some provinces and cities will introduce the new standards in July this year, under the 'Blue Sky Protection Plan.' This will result in a step change in palladium loadings on Chinese cars.

Johnson Matthey's May 2019 Pgm Market Report includes a special feature on European emissions legislation. Under Euro 6d legislation, emissions compliance is being extended from the laboratory to the real world via 'real driving emissions' testing using portable emissions measurement equipment. This is motivating additional palladium use on European gasoline cars.

Margery Ryan, Principal Automotive Analyst at Johnson Matthey, added: "Euro 6d legislation is having a significant impact on the palladium market. Vehicles are being tested under a wider range of driving conditions, making emissions control more challenging. Exhaust aftertreatment systems are becoming more complex and automakers are adding more palladium to meet the new requirements."

Note to editors:

Johnson Matthey plc's Pgm Market Report can be viewed and downloaded from the website (http://www.platinum.matthey.com/services/market-research/pgm-market-reports) and provides an overview of demand for platinum group metals in 2018 and an outlook for 2019. You can follow us on Twitter at @PMMJM.

Johnson Matthey's Market Research Department has undertaken fundamental research into the Platinum Group Metals markets since the 1980s. Since 1985, Johnson Matthey has published supply and demand data twice yearly, in the Platinum and Interim Platinum series of reviews (1985-2013) and in the Pgm Market Report (2014-2019). Previous reviews and reports can be downloaded from

http://www.platinum.matthey.com/services/market-research/pgm-market-reports

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, we improve the performance, function and safety of our customers' products. Our science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet's natural resources. Today more than 14,000 Johnson Matthey professionals collaborate with our network of customers and partners to make a real difference to the world around us. For more information, visit www.matthey.com.

Inspiring science, enhancing life

 

More News by PR Newswire India

Medtech Nears its Golden Age Focusing on Value-based Care

Margaret Franklin, CFA, Appointed CEO and President of CFA Institute

Sirtex Medical reaches milestone 100,000th patient dose delivery of SIR-Spheres® Y-90 resin microspheres

UBM India Announces the SAFE South India and OSH South India Exhibitions in Hyderabad

Tethr and Red Box Announce Partnership to Accelerate and Simplify the Delivery of Voice of Customer Analytics Solution

HGC launches new API hub to further advance digital transformation

ANAROCK Partners With Aldar to Market its Abu Dhabi Properties in India

SutraHR Launches India’s 1st HR Toolkit - StartupHR Toolkit

IIT Faculty Join Hands to Give Students Top Ranks at Giraffe Learning

Admissions Open at IDeA Design College

TiE Mumbai and Dubai International Financial Centre (DIFC) Help Indian FinTechs Scale Their Business Across Middle East, Africa and South Asia Region

Glenmark to Partner With Novartis to Promote, Commercialize and Distribute Three Respiratory Products in Brazil

From Smart Washing to the Future of Clothing and Fabric Care: Haier Unveils Its Latest 2019 Innovations to Enrich Its Internet of Clothes Capacity

INTL FCStone Opens IT Development Services Office in Bangalore, India

"Forging a new energy future" - iCEP Presents AOGC

Suning.com announces the acquisition of Carrefour China to achieve leaping development of FMCG retailing operations

CECEP Solar Energy Technology Unveils Cost-Effective PV Products and Solutions at SNEC 2019

Sebastián Yatra Premieres New Single "RUNAWAY," In Collaboration With Jonas Brothers, Daddy Yankee, And Natti Natasha

MEIL's Worlds Biggest Pumphouse Inaugurated

Asia’s Premier Wedding and Event Photography & Film Making Festival by Capturing WOW

Casablanca and Toronto Forge Closer Links to Foster Global Financial Services Collaboration

Hunt for Indian K-pop Stars Begin for Z-POP DREAM Season 2

Social Kinnect Evolves its Brand Identity to Kinnect

Immerge Knowledge Labs Launches India’s First End-to-End Emerging Tech and XR Business Consulting Firm

YANNI will Perform at the Prambanan Jazz Festival 2019 on July 6th

"All Night," Third Song From BTS WORLD's Original Soundtrack, To Be Released On June 21

JNA Awards reveals 2019 Honourees

Merck's Massachusetts-based Business Sectors Named 'Best Places to Work' by Boston Business Journal

Giift Launches CoolfenPay, a Fully Integrated Points Payment Gateway

SPIE To Acquire Photonex, UK's Top Photonics Exhibition

Universal Fibers Expands Finished Yarn Capabilities in Europe and Asia

Artprice: France's Cultural Policy is Not in the Country's Best Interests According to thierry Ehrmann

Instart Becomes The First Cloud-Based Security Service To Deliver Complete Web App and API Protection

The Web of Science Group Releases 2019 Journal Citation Reports, Revealing the World's Most Influential Journals

Grand Slam Tennis Champion, Naomi Osaka, Named Newest bareMinerals Global Ambassador

Navitas Earns 2019 Global Technology Innovation Award for GaNFastâ„¢ Power ICs

Organica Water Awarded Monumental Project in India

Definiens & Targos Innovation: AI-powered multiplex IHC biomarker analytic solutions for precision medicine

Early Detection Cancer Camp Organized by Shree Ramkrishna Knowledge Foundation at Lathi Taluka in Amreli

Avon appoints HCL Technologies as IT infrastructure Services Partner to Support ongoing Digital Transformation

Mohit Bharatiya, who Introduced India to Gold Lending Rates and Gold Spot Exchange, Steps Down From the Jewellery and Bullion Body

founderINDIA Launches Business Class - a Chat Show With Leading Entrepreneurs

Giftalove.com Launches Online Service of Same-day Flower Delivery Nationwide

Suning's Tax-free Subsidiary Laox Announced a Fundraising of 10.1 Billion Japanese Yen to Expand China Business and Global E-commerce

REEL Strengthens Board of Directors and Senior Leadership Team With New Appointments to Support Next Phase of Growth

PwC Launches Solution Supporting Audit of Cryptocurrency

EB5 Capital Visits India to Raise Investment for New York Ritz-Carlton Project as the Hotel Chain Comes to Pune and Mumbai for the First Time

Aeroflot Expands Route Network for Summer 2019

Flexible Workspace Cements its Place as Mainstream Real Estate Asset Class; Significant M&A Activity Forecast in 2019 as Sector Consolidates: Colliers International India

Diversity and Inclusion Still at a Nascent Stage in India, Says a JobsForHer Report on Gender Diversity

Glenmark Pharmaceuticals Receives Tentative ANDA Approval for Clindamycin Phosphate Foam, 1%

Mango Hotels Launches 46 Key Boutique Hotel in Haridwar

Versa Networks Achieves NSS Labs Recommended Rating in the 2019 SD-WAN Group Test with its Security-Enabled SD-WAN

First-ever successful mind-controlled robotic arm without brain implants

Learn How to Map Your Organization's Journey to Customer Satisfaction and Success

HONOR Kicks off HONOR 20 Global Availability, Continues Record-breaking Sales Performance in China

Global Premiere of Renault TRIBER in India

LG U+ Selects iBwave as the Tool of Choice to Bring Asia's First 5G Stadium Design

Engine Restoration Begins on One-of-a-Kind Ferrari Boat

Waystar's Uniquely Agile Ambulatory RCM Solution for Automating Claims Resolution Acclaimed by Frost & Sullivan

Employees Rate Enterprise's Pam Nicholson as Top CEO for Fourth Year in a Row

Siklu Delivers Public Safety and Public Wifi for the City of Cambridge, Ontario Canada

UNSW's India Open Day Returns for a Promising 2nd Innings

Retraining and Retaining: The effect of Automation

Arms Race Driving Investment in C4ISR, Missile Defense Systems, and Network-Centric Warfare Models

EdgeVerve Product TradeEdge Receives POI Best-in-Class Award for Distributor Management

EuroKids Franchise Orientation and Awards Night - Bringing Together the Partners for a Celebration

JD Institute is now Certified as 'Global League Institute' at the House of Commons by Great Place to Study Research Institute

MEIL Constructs the Largest Lift Irrigation Marvel: KLIP Ready for Inauguration

Data Analytics Outsourcing Market in India is Worth $27 Billion: Study by AIM & Praxis Business School

Kitchen Brains® appoints Dave Jendal Vice President, Global Business Solutions

QS World University Rankings 2020: MIT Top, US Universities Hit Historic Low

Increase in Interest for EB-5 in India - EB-5 India Reaches its per Country Limit in July, 2019

Capsave Finance Pvt Ltd. posts net profits in second year of operations

Libyan Sovereign Wealth Fund Refused Permission to Appeal

Frost & Sullivan Global Survey Outlines the Next Wave of Technology Disruptors

Aeroflot Named Best Airline in Eastern Europe for Eighth Time at Skytrax World Airline Awards 2019

Arria NLG and UiPath push digital transformation and automation forward with new strategic partnership

Piramal Pharma Solutions recognized by Frost & Sullivan for its End-to-End Integrated Services Across the Entire Drug Development Life Cycle

Cendyn announces strategic follow on equity investment from Accel-KKR

Brickwork Finance Academy Proudly Conferred the Seventh Convocation and Announced the Eighth Inaugural of its Banking and Financial Analyst Certification Program

Publicis Sapient Announces John Maeda as Chief Experience Officer

Art of the Wild Comes to Life in Paris at the Extravagant Launch of HyperNature, an Event by Perrier-Jouët

Hatsun Agro Product Ltd – Update on Start of Cattle Feed Production in Maharashtra and Expansion of Company Retail Outlets

SubAir Could be a Solution to the Wet Outfields of the Cricket World Cup

US Army deploys Howler counter-UAS capability into the battlefield

LyondellBasell and Neste announce commercial-scale production of bio-based plastic from renewable materials

Casio has Inducted a Market Sweep Action in Kolkata

Global 3D Print Materials Market for Healthcare Industry Set for Quantum Change and 20.3% CAGR Growth from 2018 to 2025

The Republic of Ecuador Announces the Results of Its Invitation for Offers to Tender for Cash Its 2020 Notes

Amazon India Emerges as the Country's Most Attractive Employer Brand Followed by Microsoft India: Randstad Employer Brand Research 2019

ColorTokens Takes Zero Trust Security to a New-generation by Unifying Network and Endpoint Security Into a Single, Cloud-delivered Platform

Companies with a strong travel culture have a competitive advantage: New research from Harvard Business Review Analytic Services in association with Egencia

Thomas Wittek Appointed as R. STAHL India MD and Board Member

RateGain Acquires BCV to Help Hotel Chains Maximize Guest Lifetime Value

Wise MPay Partners With Jelurida to Launch Blockchain Financial Services Platform in Southeast Asia

India's SME-focused Digital Neo Bank EZOTO Gearing up for Launch in June 2019

Aiozium Launched SaaS-based Marketing Intelligence Tool Powered by AI

TV18 Broadcast India Upgrades its Newsgathering Operations with Over 100 LiveU LU600 HEVC Units

Exotel Turns Eight, Eyes the Global Customer Communication Market

Comscore Appointed as Official Digital Partner for Ad Rates in India

Ciao Green Collaborates With ICICI Home Finance to Design 140 Branches Across India

Golden State Killer Case Selected As 2019 DNA Hit Of The Year

Artprice (New York) - Thierry Ehrmann: Patrick Drahi's Acquisition of Sotheby's Confirms the Art Market's Entry Into the Digital Era of the 21st Century

Citi, Societe Generale, DNB and other leading international banks promote greener global shipping through new principles

Bitdefender Expands APAC Presence With New Strategic Hire

IGP (Israel Growth Partners) Together With Its Major LPs Invest $110M in Cellebrite

The HONOR 20 Color Report: 'Positivity' in Vogue in Fashion Capitals London and Milan

LONGi ranked the most financially stable PV manufacturer by Bloomberg NEF

GCL System Integration Among First Companies Awarded LeTID test Certificate from TÃœV Rheinland

Canopy Growth provides update on international operations and activities

Polygoons, Inc Enhances its Augmented and Virtual Reality Technology

Coursmy Launches Global Live and Video E-learning Marketplace Platform

6th Anniversary of BTC Futures Trading, OKEx Enhanced Risk Management System for a Better "Future"

DLF CYBERHUB and AMPM Café Celebrated Father's Day With Harley-Davidson Riders

Thailand's surge in IMD competitiveness list reflects dynamic economy, says BOI

TB Joshua to Host Meeting in Nazareth, Israel

OPPO Roars for Team India; Released Song ‘Jeet Pe Apna Haq Hai’ Created With Fans’ Heartbeats

From Black Hole Imaging to NASA Climate Research - Supermicro High-Performance Systems Support Major Scientific Discovery & Exploration Even to Distant Galaxies

Seamless Air Alliance showcases technologies enabling the future of inflight connectivity at Paris Air Show 2019

Sino-Russian (Harbin) economic and trade index launched to serve as barometer of bilateral trade

Danone and Migros CEOs Elected New Co-Chairs of The Consumer Goods Forum Board

Anant National University Welcomes its New Provost, Dr Anunaya Chaubey

One Man's Dream - India's Digital Awakening

Snehal Nagarsheth Joins Anant National University as Dean, School of Architecture

Systech and Toppan Sign Partnership Agreement to Deliver Brand Protection Solutions Worldwide

Top 10 Disruptive Digital Media Houses to Watch Out for in 2019-20

The 2019 China and South Asia Aviation Trends Forum Promotes Common Development through Interconnection and Cooperation

edelkrone Introduces Their First ORTAK Product

Health Horizons' Original Recipes Transform the Hemp Industry

FE CREDIT, Focussed on First Time Card Users in Vietnam, Crosses the One Million Cards Milestone and Gets the "Best in Card Acquisition" Award from Mastercard.

SALT Announces Its Signature Global Thought Leadership Conference In Abu Dhabi, UAE

The Cost of Anti-Money Laundering Compliance in Asia Pacific Region Increased 10% in Past 24 Months, Finds Study by LexisNexis Risk Solutions

Kemin Launches New Vision and Logo for the Future

Rove At The Park Opens Doors to a Thrilling Lifestyle Experience in Dubai Parks and Resorts

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Delhi: Doctor held after video showing h...
Opposition should rethink, but its lead...
Will behead Muslim youth who harass Adiw...
PM Modi, Shah condole death of Rajasthan...
Why are Sonia, Rahul not in jail, if the...
Pakistan didn't enter Indian airspace af...
More...    
 
 Top Stories
Another Trinamool MLA to defect to ... 
Singer Tove Lo loves having career ... 
Rs 50 lakh stolen from Gulmarg Gond... 
Haryana Congress splits into two fa... 
Jagan Reddy orders demolition of Pr... 
J-K: Miscreants involved in damagin... 
Microsoft planning a foldable Surfa... 
Researchers build AI drone that can...