A recent report from the World Platinum Investment Council highlights that demand for platinum is strong and prices may likely stay elevated into next year. The council explains that unprecedented conditions in Q3 lifted the metal’s prices to their highest in over a decade, noting that even as the market slowly moves toward equilibrium, supply conditions are projected to remain tight through 2026.
In its latest forecast, the council expects the metal’s market to post a 692,000-ounce supply deficit this year, a slight improvement from the Q2 estimate of over 800,000 ounces. Looking ahead to next year, analysts project a near-balanced market, with a surplus of roughly 20,000 ounces of platinum.
The WPIC’s Director of Research, Edward Sterck, stated in a recent interview that the projected surplus hinged on global trade returning to more normal conditions. He explained that if current trade tensions eased, roughly 150,000 ounces of platinum could be released from American vaults and redirected into physical markets overseas.
Much like the silver sector, platinum has experienced major supply-chain disturbances as different market players redirect large volumes of metal to the U.S. to evade possible import tariffs.
Even though platinum itself isn’t targeted as a precious mineral, the risk remains, especially now that it appears on the Geological Survey’s latest list of critical minerals. These tariff concerns have kept most of the metal shipped into the U.S. earlier in the year from moving back out, tightening supply in London’s market at a time when investor interest has been increasing.
The report also pointed out that, aside from trade-related issues, changes in investor behavior could play a key role in bringing the platinum market into balance in 2026. Experts expect a pullback in investment interest, along with investors taking profits and reducing their holdings in platinum-backed ETFs, to weigh on overall demand.
According to the report, total demand for the metal is projected to fall by 6% annually, primarily driven by investment demand dropping by about half.
While more stable conditions for global trade may relieve some supply-chain pressures and help keep the market balanced, Sterck cautioned that the industry still faces significant underlying uncertainty, with supply remaining strained even as demand stays strong. As 2025 winds down, the council projects that global mine supply will drop 5% annually to 5,510,000 ounces, leaving output about 10% below the pre-pandemic 5-year average.
Increased recycling of platinum may add to the metal’s supply though, with the council forecasting a 7% increase in recycling supply in 2025.
For now, enterprises like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) are enjoying the price surge that the metal has recorded this year. These companies remain well positioned to continue benefiting from the conditions favoring the platinum market’s rally.
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