Category: Geovanny Vicente

LONDON, March 10, 2021 /PRNewswire/ —

• Supply down 17% in 2020, while demand down only 7% and deficit of -932 koz – the largest on record
• Third consecutive annual deficit forecast for platinum in 2021
• Automotive platinum demand in 2021 forecast to increase 25% accelerated by Chinese heavy-duty vehicles
• Investment demand to remain strong as platinum’s links with the hydrogen economy continue to attract investor interest, while platinum remains heavily undervalued compared to gold and palladium

The World Platinum Investment Council (WPIC) today published its Platinum Quarterly for the fourth quarter of 2020, which also includes a revised forecast for 2021.

For the third consecutive quarter, platinum posted a deficit in Q4 2020 of -170 koz, as strong demand in automotive, industrial and jewellery sectors and sustained strong investment demand for platinum outstripped constrained supply.

Overall, despite a year that saw the global economy contracting by 3.5%, the platinum market deficit in 2020 was -932 koz, the largest on record. While total demand dropped by 7% (-569 koz), the sharp decline in mining supply of 20% (-1,203 koz) and the fall in recycling of 10% (-210 koz) contributed to total supply being down 17% (-1,413 koz).

Against a backdrop of widespread vaccine programmes seeing economies return towards normal activity, platinum demand is forecast to increase by 3% (+254 koz) to 7,992 koz, while supply will recover 17% (+1,126 koz) to 7,932 koz resulting in a deficit of -60 koz in 2021, the third consecutive annual deficit. The demand growth in 2021 is expected to be driven predominantly by strong recoveries in automotive, jewellery and industrial demand, offsetting reduced yet very strong investment demand.

Resurgent automotive sector

Platinum automotive demand in Q4’20 grew 5% (+31 koz) year-on-year due to a healthy recovery in light-duty and heavy-duty vehicle production. North America in particular saw platinum demand increase 17% (+13 koz), including strong growth in light-duty diesel vehicles, helping to offset declines in other parts of the world. Heavy-duty vehicle production meanwhile saw a 7% increase globally, spearheaded by China increasing by 21%. Heavier PGM-loaded catalysts which are needed to fully comply with the fast-approaching China VI legislation, contributed to a 51% (+29 koz) increase in platinum demand from this region.

Light-duty vehicle production is expected to recover in 2021, reaching levels just below those seen in 2019. Despite this slight shortfall, there is expected to be a 25% (+606 koz) increase in automotive platinum demand, mainly due to higher vehicle production, increased loadings to meet tighter emissions regulations and substitution of platinum for palladium in gasoline after-treatment systems.

Platinum investment demand stays high

In Q4’20 investment demand was 63% (+51 koz) higher than Q4’19 despite being 86% (-827 koz) lower than in Q3’20, itself the highest quarterly total on record. Bar and coin net purchases more than doubled year-on-year, growing 112% (+32 koz) while ETF holdings added 74 koz during the quarter, up 56% on the prior year.

Investors continue to be very interested in platinum: its key roles in the hydrogen economy, to produce green hydrogen and its use in fuel cell electric vehicles, the accepted views of significant near-term substitution of platinum for palladium, and the substantial discount to both gold and palladium suggest strong future fundamentals. While platinum investment, in bars and coins as well as ETFs, is expected to remain strong in 2021 – forecast to be above the 5-year average – it may not exceed the exceptional level seen in 2020. Platinum bar and coin demand is forecast to be 15% (-90 koz) lower, but still remain elevated. Overall, global net ETF investment holdings are expected to increase by 250 koz (c.50% below 2020).

Strong recovery underway in jewellery sector

Jewellery fabrication turned positive in Q4’20, up 7% (+32 koz), with notable increases in demand in North America – the first year-on-year quarterly increase in 2020 of 4% (+4 koz) – and in China – the third consecutive year-on-year increase since Q1’17 of 15% (+31 koz).

In 2021, total jewellery demand is expected to increase 13% (+234 koz) above 2020 levels, with improvements in every market as economic life returns and the worst of COVID-19 passes.

Paul Wilson, CEO of the World Platinum Investment Council commented: “In a year of extremes, as 2020 was, we became accustomed to the term ‘record level’ in what we saw and read. Platinum’s record annual deficit and record investment demand in 2020 highlight platinum’s precious attraction as a hard asset during periods of high global risk, because of its deep discount to gold and palladium and due to its significant short- and long-term demand growth potential.

“Having endured the dark days of the pandemic and global economic slowdown, we are now considering the possibility of the world returning to normal. The positive momentum in economic recovery of the latter part of 2020 is exhibited in the fact that activity has restarted, and platinum demand has rebounded in the automotive, industrial, and jewellery sectors.

“However, as we re-emerge from the pandemic, we now consider the role platinum has to play in global decarbonisation – one of the clearest global imperatives to emerge during the pandemic. Platinum is key to the production of green hydrogen and in fuel cells for electric vehicles, and this understanding among investors is rapidly increasing. As hydrogen availability rises and its production cost falls, due to accelerated global investment in decarbonisation, fuel cell vehicles are likely to require over a million more ounces of platinum per annum within 10 years. In addition, platinum’s rapidly accelerating substitution for palladium in autocatalysts will require over a million more ounces of platinum per annum within four years.

“The combination of this substantive demand growth, combined with the rally in recent months, could well drive increased investment demand, for investors with both short- and long-term investment horizons. We continue to see an increase in the number of investors, who had not previously considered platinum, attracted by the strategic underpins to demand for this unique metal. When these investors take a closer look, they see that platinum’s deep discount to gold and palladium and compelling demand growth potential greatly enhance the likelihood of investment demand growth.”

Disclaimer

Neither the World Platinum Investment Council nor Metals Focus is authorised by any regulatory authority to give investment advice. Nothing within this document is intended or should be construed as investment advice or offering to sell or advising to buy any securities or financial instruments and appropriate professional advice should always be sought before making any investment. For further information, please visit www.platinuminvestment.com

View original content:http://www.prnewswire.com/news-releases/wpic-platinum-demand-outstripped-supply-by-record-932-koz-in-2020-with-third-consecutive-annual-deficit-expected-in-2021-301243555.html

SOURCE World Platinum Investment Council (WPIC)

MCLEAN, Va., March 9, 2021 /PRNewswire-PRWeb/ — The Northern Virginia Technology Council (NVTC), the membership and trade association for the technology community in Northern Virginia and one of the largest technology councils in the nation, calls on Congress to oppose the “Protecting the Right to Organize Act of 2021” (H.R. 842, PRO Act). This sweeping and unnecessary proposal would nullify the rights of American workers protected by right-to-work laws in 28 states, and would allow employees to sign a petition and create overnight unionization. The legislation is slated to be voted on this week in the U.S. House of Representatives.

NVTC has long supported efforts that increase competitiveness and economic growth to ensure Virginia maintains its ranking as the top state for business. Preserving our right-to-work status and avoiding negative signals that drive private enterprise away from the Commonwealth are critical pillars of our success. Furthermore, NVTC believes no citizen of the Commonwealth should be forced to join a union and pay its dues in order to work.

Jennifer Taylor, president and CEO of NVTC, said, “Technology companies breed innovative workplace environments that often rely on close collaboration between management and their employees. In this ever-changing and competitive global marketplace, survival for technology companies requires flexibility and a healthy relationship between the employer and employees. We strongly oppose the PRO Act because it intrudes deeply into that relationship and will sow the seeds of discord within the workplace, as well as hinder Virginia’s competitiveness. In an economy as difficult as the one we now face, our collective focus needs to be on building bridges between labor and management, not creating more profound divides.”

NVTC joins our colleagues at the Consumer Technology Association (CTA) in urging the Congress to oppose this legislation.

###

About the Northern Virginia Technology Council
The Northern Virginia Technology Council (NVTC) is the trade association representing the Northern Virginia technology community. As one of the nation’s largest technology councils, NVTC serves companies from all sectors of the industry, from small businesses and startups to Fortune 100 technology companies, as well as service providers, academic institutions, foreign embassies, and nonprofit organizations. Nearly 500 entities make up the NVTC membership and look to the organization as a resource for networking and educational opportunities, peer-to-peer communities, policy advocacy, industry promotion, fostering of strategic relationships, and branding of the region as a major global technology center. Visit NVTC at http://www.nvtc.org.

Media Contact

Kara Mauceri, Northern Virginia Technology Council, 301-775-3322, kmauceri@nvtc.org

Lexie Janney, Merritt Group, 540-520-3042, nvtc@merrittgrp.com

SOURCE Northern Virginia Technology Council