Johnson Matthey, London, England announced that the platinum market will remain in deficit in 2025 while palladium moves back into balance, according to its 2025 PGM Market Report released ahead of London Platinum & Palladium Market week. The company forecasts a 3% decline in primary platinum output due to operational restructuring, extreme weather and maintenance in South Africa, with secondary supplies subdued globally except in China, where a renewed trade-in incentive scheme is boosting scrap returns. Industrial platinum demand is expected to grow modestly, driven by capacity expansions in chemicals, fibreglass, biofuels and synthetic fuels, even as automotive use declines 5% amid the shift to battery electric powertrains.
Palladium, which faced structural deficits from 2012 to 2024, should reach equilibrium in 2025 as stronger recycling in China offsets reduced primary output from South Africa and the U.S., despite weaker scrap flows elsewhere, and a 5% drop in automotive palladium use.
The rhodium market is forecast to stay in deficit after South African supply falls and auto consumption dips, while industrial demand rebounds with normalized glass-industry purchasing. Ruthenium demand is set to climb 2% on data-centre expansions and robust chemical catalyst use, likely resulting in a significant shortfall without further inventory drawdowns. A slight rise in iridium production should help balance that market, as lower chemical usage is offset by increased crucible demand.
Rupen Raithatha, market research director, noted that uncertainty over U.S. import tariffs could weaken vehicle output and scrap volumes, posing downside risks. Margery Ryan, advocacy and market development manager, added that increased defence spending may drive additional PGM demand given their vital role in military and aerospace technologies.
