Towards a global platinum and palladium deficit in 2020?

In a study released May 8, Bank of America Merrill Lynch Global Research predicts that there will be a global supply deficit of platinum and palladium this year as a direct result of the temporary shutdown of the South African mining industry – the world’s largest producer of the two metals – in the wake of the containment measures imposed by the VID19 pandemic. « Our basic assumption is that platinum and palladium production will only be at 50% of capacity in May and June, before reaching full capacity again in December. Adding it all together, we expect both platinum and palladium to be in a deficit position this year, » said analysts at the U.S. bank, noting that the Rainbow Nation alone produces 78 per cent of the world’s platinum and 36 per cent of its palladium.