Platinum Price News: Supply Deficit Persists But Market May Stay Flat

The platinum price landscape has become increasingly complex heading into 2025. After trading between US$900 and US$1,100 per ounce in 2024, with a peak of US$1,094 on May 17, the precious metal faces a market characterized by persistent supply shortages yet restrained price momentum. This platinum price news reflects deeper structural shifts reshaping demand for the industrial metal.

Last year’s price movement was anchored by strong automotive demand that hit a seven-year high in early 2024, combined with speculation around interest rate cuts in May. However, supply constraints—a shortfall exceeding 450,000 ounces—provided only modest upside support. Now, with 2025 forecasts in focus, market participants are grappling with conflicting signals about where platinum price movements may head.

Automotive Demand Faces Electrification Headwinds While Jewelry Provides Stability

According to the World Platinum Investment Council (WPIC), overall platinum demand is projected to remain essentially flat in 2025, declining just 1 percent to 7.86 million ounces. The automotive sector, which has dominated demand patterns, confronts a structural challenge: the surge of electric vehicles.

The traditional automotive application—catalytic converters that reduce emissions—requires both platinum and palladium interchangeably. With palladium currently trading at a premium, manufacturers have little incentive to switch. However, electric vehicles, expected to capture 16.7 percent of the global market share by 2025 (up from 7 percent in 2023), eliminate the need for platinum-group metals entirely. S&P Global Mobility projects 15.1 million EV units will sell this year.

Yet demand isn’t entirely grim. Jewelry consumption is forecast to grow 2 percent to 1.98 million ounces, providing a stable demand floor. Investment demand is also expected to rise 7 percent from 2024 to 420,000 ounces. Offsetting these gains, industrial demand is predicted to fall 9 percent to 2.22 million ounces. The steepest decline comes from glass production, where platinum use is forecast to plummet 57 percent to 286,000 ounces. The metal’s high melting point makes it essential for glass manufacturing equipment, yet demand has normalized from the 2021 surge when display manufacturers expanded capacity.

Supply Gains Barely Offset Demand Pressures; Recycling Surges

Platinum supply is anticipated to increase modestly—just 0.76 percent—reaching 7.32 million ounces in 2025 versus 7.27 million ounces in 2024. Refined production is expected to contract 1 percent, with South African output continuing to decline. Paul Dunne, CEO of Northam Platinum Holdings, acknowledged in August that the industry had entered “a phase of irreversible decline,” citing low prices and EV adoption headwinds.

One bright spot: secondary supply from recycling is projected to reach its highest level since 2021, rising 12 percent to 1.77 million ounces. Despite a forecast supply deficit of 539,000 ounces for the third consecutive year, this shortfall may not translate into aggressive platinum price appreciation. The market holds substantial aboveground stockpiles exceeding 3.01 million ounces, providing a price stabilizer that could suppress volatility.

Where May Platinum Price News Point Investors? Expert Forecasts Suggest Caution

For platinum price predictions, market consensus leans toward restraint. Jeffrey Christian of CPM Group projects the platinum price will trade relatively flat in 2025, likely ranging between US$900 and US$1,000—putting downward pressure on the metal. Heraeus Precious Metals echoes this sentiment, predicting a range of US$850 to US$1,220 without significant upside.

UBS Group strikes a middle note, setting a platinum price target of US$1,100 for mid-2025. The Swiss bank believes real assets will benefit from Federal Reserve rate eases, though it acknowledges platinum may lag gold until higher industrial activity returns. Geopolitical tensions—evidenced by platinum price spikes during October’s Russian sanctions threats—remain a potential catalyst for volatility.

The platinum price news for 2025 ultimately reflects a market in tension: supply deficits provide a floor, but demand headwinds and massive inventory buffers cap meaningful upside. Investors monitoring this precious metal should watch the EV adoption curve, South African production trends, and recycling flows as the true drivers of platinum price direction.