The World Platinum Investment Council forecast a fourth consecutive annual platinum deficit of about 297,000 ounces for 2026, even after the market recorded its first quarterly surplus in six quarters, underscoring the metal’s reliance on investment flows.
Those outflows coincided with a broad pullback in precious metals after platinum reached a record near $2,923 an ounce in late January. Full-year demand is projected to fall 9% to 7,674,000 ounces, though the council expects the quarter’s investment outflows to reverse over the balance of the year, restoring the deficit.
“Platinum’s fundamentals remain very, very supportive,” said Edward Sterck, director of research at the World Platinum Investment Council, adding that investment is expected to return and recoup some of the first quarter’s losses.
The assessment frames the recent price weakness as a function of investor positioning rather than a structural improvement in supply, with above-ground inventories continuing to provide only a limited buffer against mine output concentrated in South Africa, Russia and Zimbabwe. The pattern mirrors developments across the precious-metals complex, where investment and official demand have remained the principal swing factors through a period of price consolidation. The development reflects platinum’s continued dependence on investment flows to offset persistent constraints in primary supply.
Source: GoldFix
