Core Viewpoint - The global platinum market is entering a prolonged shortage cycle, driven by supply constraints and strong demand, particularly from China, which is expected to continue for the next five years [1][2]. Supply Side - Global platinum supply is heavily reliant on South Africa, with a mining expansion cycle lasting three years, making it difficult to quickly respond to strong market demand [1]. - The industry is facing a structural deficit that is likely to persist in the coming years, exacerbating supply tensions [1]. Demand Side - China has emerged as a key driver of global platinum demand growth, with significant increases in jewelry, industrial, and investment sectors [1]. - Jewelry demand in China saw a remarkable increase, with platinum jewelry processing volume more than doubling in Q2 2023, and the demand scale for the first half of 2025 approaching the total for 2023 and 2024 [2]. - Investment demand is also robust, with a cumulative growth of 19% in physical platinum investment demand from 2022 to 2024, and a notable shift towards small-scale investment products, which saw a demand increase of over six times year-on-year in Q2 2025 [2]. Market Dynamics - The purchasing behavior in China has shifted from being negatively correlated with prices to being driven by genuine demand, even as platinum prices remain relatively high [2]. - The long-term outlook for platinum investment is positive, with expectations of continued shortages until 2029, and an optimistic view on platinum becoming a growth highlight in the precious metals market [2].

Core Insights - The global platinum supply is projected to decrease by 10% year-on-year in Q1 2025, totaling 45.3 tons [1] - Demand for platinum is expected to increase by 10% year-on-year, reaching 70.7 tons [1] - A platinum shortage is anticipated for the third consecutive year in 2025, with a projected deficit of 30 tons [1] Supply Summary - Global platinum supply in Q1 2025 is 45.3 tons, reflecting a 10% decrease compared to the previous year [1] Demand Summary - Platinum demand is forecasted to grow by 10% year-on-year, amounting to 70.7 tons in Q1 2025 [1] Market Outlook - The market is expected to face a platinum shortfall for the third consecutive year in 2025, with a significant gap of 30 tons [1]