Platinum market in 1992 in oversupply

The world platinum market was marginally oversupplied last year by 20,000 oz., Johnson Matthey says in its Platinum 1993 Review.

Supplies of the metal dropped by 8% in 1992 to 3.82 million oz. because of a drop in Russian sales. Western demand fell by 6% to 3.8 million oz., largely because of investment and industrial purchases.

Johnson Matthey says South African supplies of platinum were stable at 2.75 million oz. (about 72% of total 1992 world supply). Russian shipments fell by about one-third to 750,000 oz.

On the demand side, jewelry was stronger; demand rose by 40,000 oz. More platinum was used by the autocatalyst sector than in 1992, but auto company purchases of the metal dropped slightly because, Johnson Matthey says, financially pressed automakers used platinum from their strategic stocks. Industrial demand dropped, as did demand for platinum investment products. The company projects increased platinum consumption by the auto industry, by at least 200,000 oz., this year, with higher demand in all regions except Japan. Demand for platinum jewelry should be at least as strong as in 1992.