Core Viewpoint - The global platinum market is experiencing a complex interplay of supply and demand dynamics, with a slight increase in supply expected in 2024, while demand continues to grow, particularly in industrial applications and jewelry [1][8][13]. Supply Side - Global platinum supply decreased from 2022 to 2023, but is projected to increase slightly to 227 tons in 2024, a rise of 6 tons year-on-year [8][10]. - The primary source of platinum supply is mining, which accounts for over 70% of total supply, with South Africa and Russia expected to contribute significantly to the increase in 2024 [10][11]. - Global platinum recycling has been declining due to various factors, with total recovery expected to drop to approximately 46 tons by 2024 [10][12]. - China's platinum supply heavily relies on imports, with over 85% of its total supply of approximately 118 tons in 2024 coming from foreign sources [14]. Demand Side - Global platinum demand is anticipated to reach 258 tons in 2024, reflecting a 5% increase year-on-year, with a notable 10% growth in the first quarter of 2025 [13]. - The automotive sector remains the largest consumer of platinum, accounting for 38% of total demand in 2024, although a slight decrease in demand is expected due to reduced vehicle production [6][13]. - Industrial demand for platinum is stable, with significant applications in chemicals, glass, and electronics, while jewelry demand is influenced by macroeconomic factors and consumer confidence [13][14]. - In 2024, jewelry demand is projected to increase by 4 tons to 62 tons, with notable growth in India and historical highs in Europe and North America [13]. Industry Structure - The platinum industry exhibits a "pyramid" structure, with a few major mining companies at the top and numerous end-users, including jewelry and industrial manufacturers, at the bottom [3][4]. - The market is characterized by oligopolistic supply dynamics, where production cuts by upstream miners can significantly impact prices [4].

Core Viewpoint - The article discusses the upcoming launch of platinum and palladium futures on the Shanghai Futures Exchange, providing an overview of the platinum and palladium industry, including their properties, applications, and market dynamics [4][12]. Group 1: Platinum and Palladium Overview - Platinum and palladium are part of the platinum group metals, with low abundance in the Earth's crust, primarily found in South Africa, Russia, and Zimbabwe [4][5]. - Both metals exhibit excellent catalytic properties due to their unique electronic structures, which allow them to lower activation energy in chemical reactions [4][9]. - Common forms of platinum and palladium in circulation include metal ingots and sheets, with a purity requirement of at least 99.95% for trading [12][13]. Group 2: Industry Chain Structure - The platinum and palladium industry chain consists of three main segments: upstream exploration and mining, midstream refining and processing, and downstream applications and recycling [14][16]. - The demand for palladium is heavily concentrated in the automotive sector, while platinum has a more diversified demand across various industries, including automotive, jewelry, and investment [16]. Group 3: Demand Dynamics - The automotive industry is the largest consumer of both metals, with projections indicating that by 2025, automotive demand will account for 41% of platinum and 82% of palladium consumption [16]. - In the jewelry sector, platinum is favored for its durability and aesthetic qualities, contributing significantly to its demand, while palladium's jewelry consumption is minimal [16]. - Industrial applications for platinum are broader due to its superior stability, with approximately 28% of platinum demand coming from this sector, compared to only 16% for palladium [16].