Platinum demand is set to fall by 7.2% globally this year, on the back of lower demand from the automotive and jewellery sectors.
Typically, these sectors account for 34% and 24% of total demand respectively, but Covid-19 has dampened the sectors’ operations and their own demand, says data and analytics company GlobalData.
China and Japan, the two biggest platinum-consuming nations, together account for 35% of platinum demand, says senior mining analyst Ankita Awasthi.
Demand from these countries is expected to fall by 9.2% and 11.8% respectively this year.
In China alone, GlobalData predicts, metal demand for jewellery, industrial, automotive and other uses is likely to contract by 14%, 4.6% and 3.9% respectively.
Japanese demand will decline by 14% for autocatalysts, 12.1% for jewellery and 7.5% for industrial uses.
GlobalData forecasts that demand from the automotive sector will recover over the coming years as stricter emission standards are implemented.
GlobalData says China has the world’s largest automotive industry and consumes 7.1% of the metal for autocatalysts. With the country having to shut down its industrial belts during its lockdown, the country recorded a 79% year-on-year fall in automotive sales in February and a 43% fall in March.
However, sales subsequently grew by 4.4% year-on-year in April, 14.5% in May and 11.6% in June.