DBT Bureau
Pune, 23 May 2026
The global platinum market shifted into its first surplus in six quarters during January–March 2026 as the Iran war triggered sharp investment outflows and pressured precious metals demand. Platinum prices, after surging strongly in 2025, declined from record highs as geopolitical tensions increased market volatility and liquidity-driven selling. Demand weakened significantly across investment, automotive, and jewellery sectors, while supply increased due to stronger mine production and higher recycling activity, particularly from South Africa. Despite the temporary surplus, the World Platinum Investment Council expects the market to return to deficit for full-year 2026 as tightening above-ground stocks and limited supply growth continue supporting long-term fundamentals.
Key Highlights
* Platinum market recorded its first surplus in six quarters during Q1 2026.
* Demand declined 31% year-on-year due to investment outflows and weaker consumption.
* Platinum prices corrected sharply after hitting record highs in January 2026.
* Mine supply increased 22% as South African production recovered from prior disruptions.
* WPIC still forecasts a 297,000-ounce platinum deficit for full-year 2026.
Platinum prices witnessed heightened volatility after the global market moved into surplus during the first quarter of 2026, mainly due to geopolitical tensions arising from the Iran war and weaker investment demand. The precious metal, which had rallied sharply in 2025, came under pressure as investors shifted toward liquidity amid broader market uncertainty.
Spot platinum prices had surged nearly 127% during 2025 and touched a record high of $2,919 per troy ounce in January 2026. However, prices later corrected toward the $2,000 level as momentum in the broader precious metals rally weakened and geopolitical tensions in the Middle East triggered liquidation across commodity markets.
According to the World Platinum Investment Council (WPIC), the platinum market recorded a surplus of 268,000 ounces during January–March 2026 compared to a deficit of 658,000 ounces in the same period last year. Total demand declined 31% year-on-year to 1.5 million ounces, largely due to net investment outflows of 225,000 ounces along with softer automotive and jewellery consumption.
On the supply side, total platinum availability increased 18% to 1.7 million ounces. Mine supply rose 22% following recovery in South African output after flooding disruptions in 2025, while recycling volumes increased 7% as elevated prices encouraged additional scrap recovery.
Despite the temporary surplus, WPIC expects the platinum market to remain fundamentally tight in 2026. The organization raised its projected full-year deficit estimate to 297,000 ounces as above-ground inventories continue to decline sharply.
Although platinum entered a temporary surplus during early 2026, tightening inventories and persistent supply constraints are expected to keep the broader long-term market outlook supportive.
Source: Kedia Advisory
