The global platinum market is set for an annual average deficit of 7.78 mt in the six years to 2021, the World Platinum Investment Council said Friday.
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A WPIC-commissioned report forecast automotive demand would remain robust, with demand for platinum in the global truck market possibly doubling over the next five years, while stricter emissions standards should help increase light duty demand even with diesel cars expected to lose market share.
Global jewellery demand was predicted to grow 1%/year until 2021 on strong Indian demand, despite little growth forecast for the Chinese market.
Delivering a "cautious forecast for investment demand growth", the report said additional demand will be dependent on an increase in the availability of new products.
Meanwhile, supply was expected to stay tight in the next six years, with it "unlikely that primary supplies of platinum will rise above 2015 levels before 2021, with the potential for downside production risk higher than upside potential", the report said.
Mitsubishi said in a note Friday it agreed with the report's findings on supply, with primary supplies of platinum "unlikely to rise by much over the next 6 years, and risks to output are essentially skewed to the downside".
The London Bullion Market Association Platinum Price settled at $883/oz Thursday afternoon, up $7/oz on Wednesday's close.
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--Edited by Dan Lalor, email@example.com