22.12.202512:50:32UTC+00Platinum Futures Near Record High

Platinum futures have experienced a significant rise, surpassing $2,110 per ounce and nearing their 2008 peak, as a result of constrained supply conditions and heightened investment interest. Supply constraints have been notable, with the market facing three consecutive years of deficits. Projections for 2025 suggest a deficit of 692,000 ounces, which has diminished above-ground stocks by 42%, leaving less than five months' worth of reserves. On the demand side, fundamentals have strengthened considerably. The European Union has adjusted its intended 2035 prohibition on combustion-engine vehicles, now advocating for a 90% reduction in CO2 emissions from 2021 levels but still permitting plug-in hybrids. This policy change is likely to decelerate the shift towards electrification, thus supporting sustained platinum demand for automotive catalysts. Investment demand continues to be strong, with the World Platinum Investment Council forecasting Chinese purchases of platinum bars and coins to reach 418,000 ounces by 2025. Confidence in Chinese demand has been further bolstered by the introduction of platinum futures on the Guangzhou Futures Exchange.