According to Johnson Matthey’s 2024 PGM Market Report, the demand for platinum, palladium, and rhodium is expected to continue outpacing supply. Notably, the platinum market is forecasted to experience its largest supply shortfall in a decade.
Johnson Matthey’s latest PGM Market Report, released just before the annual London Platinum & Palladium Market week, predicts persistent deficits in the PGM markets through 2024. The platinum market, in particular, is anticipated to see a 2% decline in primary supply, with Russian shipments normalizing after significant stock sales in 2023. In South Africa, processing backlogged platinum will mitigate the impact of restructuring among major PGM miners. Despite this, demand for platinum should stay robust, bolstered by investment and industrial use, particularly in the glass industry. Although automotive use of platinum is expected to decrease slightly due to reduced diesel car production, it will still hover near fifteen-year highs.
The deficits in palladium and rhodium markets are projected to shrink in 2024. This is due to a decline in automotive demand, as global gasoline car production falls and Chinese car manufacturers reduce PGM content in catalytic converters to cut costs. Both primary and secondary supplies are anticipated to rise modestly, aided by increased automotive recycling from processed scrap in China.
Rupen Raithatha, Market Research Director at Johnson Matthey, noted that while platinum, palladium, and rhodium will all be in deficit this year, the markets remain highly liquid. During 2020-2022, automotive and industrial users purchased excess metal to mitigate price and supply risks. Since then, they have been drawing down their PGM inventories, with some even selling metal back into the market. This has led to a significant drop in palladium and rhodium prices in 2023, which have remained relatively stable in 2024.
Johnson Matthey’s report emphasizes the critical environmental applications of PGMs, including their roles in reducing air pollution, enhancing energy efficiency, and lowering CO2 emissions. There has been significant investment in platinum for glass production equipment used in wind turbines, which require substantial amounts of glass fiber. Additionally, iridium anodes are essential for producing ultra-thin copper foils for batteries, and ruthenium-iridium electrodes are used for purifying ship ballast water. These metals are also vital for PEM electrolysis in renewable hydrogen production, which holds promising growth prospects.
Accompanying the PGM Market Report, Johnson Matthey released a special report titled “The PGM Opportunity,” highlighting the pivotal role PGMs will play in the energy transition. As the production of internal combustion engine vehicles declines, the availability of platinum, palladium, and rhodium will increase within a more favorable price environment. This shift is encouraging innovation and market development that leverages the unique properties and established supply chains of these metals.
Alastair Judge, Chief Executive of Platinum Group Metal Services at Johnson Matthey, stated, “The PGM opportunity will be crucial during the energy transition as other metals face increasing supply pressures. Johnson Matthey possesses the scientific expertise, market insight, and infrastructure to develop and support new PGM applications across diverse markets. However, industry-wide collaboration is essential to fully unlock the potential of PGMs.
