DBT Bureau
Pune, 11 Sep 2026
The global platinum market is expected to record its first annual surplus since 2022, with the World Platinum Investment Council forecasting a 265,000-ounce surplus in 2026, reversing its earlier 297,000-ounce deficit estimate. Platinum prices have fallen 10% this year to around $1,840 per ounce after rising 127% in 2025. Weaker investment and jewellery demand, particularly in China, has pressured the market. Second-quarter demand declined 16% year-on-year to 1.7 million ounces, while supply increased 1% to 1.9 million ounces, supported by a 9% rise in recycling. However, low above-ground stocks equivalent to around 14 weeks of demand remain supportive.
Key Highlights
• WPIC forecasts 265,000-ounce platinum surplus in 2026, reversing earlier 297,000-ounce deficit estimate.
• Platinum prices have fallen 10% this year to around $1,840 per ounce.
• Second-quarter platinum demand dropped 16% year-on-year to 1.7 million ounces.
• Jewellery demand plunged 32%, while automotive demand declined 6% amid weaker market conditions.
• Platinum supply rose 1% to 1.9 million ounces, supported by a 9% increase in recycling.
Platinum prices have weakened 10% this year to around $1,840 per ounce, increasing pressure on the market as softer investment and jewellery demand push the global platinum market toward its first annual surplus since 2022. The decline follows a sharp 127% rally in 2025, when platinum reached a record $2,919 per ounce in January.
The World Platinum Investment Council now expects a 265,000-ounce surplus in 2026, compared with a 297,000-ounce deficit forecast three months earlier. The major change has come from platinum-backed ETF outflows during the first half of the year, when the market surplus reached 548,000 ounces. However, ETF selling has recently bottomed out, with modest buying emerging in recent weeks, suggesting the market returned to deficit conditions during the second half.
Demand weakness remains the key pressure on prices. Second-quarter platinum demand fell 16% year-on-year to 1.7 million ounces, led by a 32% decline in jewellery demand as higher prices and weaker Chinese demand weighed on consumption. Automotive demand also declined 6%, further limiting overall offtake.
Meanwhile, total platinum supply increased 1% year-on-year to 1.9 million ounces, supported by a 9% rise in recycling. Higher secondary supply has contributed to the expected annual surplus and could limit near-term price gains.
However, platinum’s downside may remain contained by relatively low above-ground stocks, with available vaulted inventory estimated at only around 14 weeks of demand after three consecutive years of market deficits.
Platinum faces near-term pressure from surplus and weak demand, but depleted above-ground stocks and recovering ETF buying could provide a floor to prices.
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Source: Kedia Stocks & Commodities Research Pvt. Ltd.
