The PGM Market Report is Johnson Matthey's free market review of supply and demand for the platinum group metals. This edition includes a special feature on fuel cell vehicles and its implications for platinum demand.

Key Highlights

Platinum outlook for 2018:

• Less platinum will be used in diesel after treatment systems in Europe this year, as automakers cut diesel car output and more vehicles are certified to Euro 6d-TEMP standards.
• Jewellery fabrication demand for platinum will contract this year, although the rate of decrease should moderate as the Chinese market shows some signs of stabilising.
• The platinum market surplus could widen to over 300,000 oz this year, as increased industrial purchasing is outweighed by higher secondary supplies and lower demand from the autocatalyst, jewellery and investment sectors.

Palladium outlook for 2018:

• This year could see a temporary narrowing of the supply shortfall in the palladium market, if we are correct in our forecast that some primary metal held back from sale last year will be supplied to consumers during 2018.
• We anticipate that investment demand for palladium will remain deeply in negative territory in 2018, with liquidation at similar levels to last year.
• Recoveries of palladium from autocatalyst scrap will rise again this year, while there will be only a modest increase in purchasing of palladium by automakers.

Rhodium outlook for 2018:

• Rhodium demand is predicted to contract this year, as modestly higher automotive consumption is offset by lower purchasing by glass and chemicals companies (who bought unusually large quantities of metal in 2017).
• We see the rhodium market moving back into surplus in 2018, although this will not necessarily be reflected in market liquidity, if additional speculative and strategic purchasing occurs.

Ruthenium and Iridium outlook for 2018:

• Consumption of ruthenium in chemicals applications was exceptionally strong last year, and will rise again in 2018, reflecting significant investment in caprolactam and adipic acid capacity.
• Iridium saw good demand in 2016–2017 for crucibles from the electrical sector, and the coating of anodes in the electrochemical sector; however, we expect consumption to fall this year.

Read the report in full to find out more.