Luke Demo Page

Following dramatic falls in both supply and demand in 2020, initial expectations of a rapid return to pre-pandemic business conditions proved overly optimistic. PGM demand in 2021 was hit by global supply-chain disruption, especially in the auto industry, where the impact of semiconductor shortages was amplified by changes in consumer preference in favour of electric vehicles. While industrial buying was robust, except in a handful of highly price-sensitive applications, net demand for PGM in investment and jewellery contracted sharply. Primary PGM supplies were constrained during early 2021, following process plant outages in South Africa the previous year, but improved as backlogs were processed, pushing all the PGM into fundamental surplus for the calendar year. Nevertheless, temporary mismatches between supply and demand caused dramatic price movements during the early part of 2021, before increasing availability and faltering demand drove prices downwards from mid-year.

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