Story audio is generated using AI
The platinum group metals (PGMs) market is expected to remain in a structurally tight position, with persistent deficits across key metals and continued constraints in South African production shaping global supply conditions.
According to the May 2026 PGM Market Report from Johnson Matthey, a London-based multinational specialising in specialty chemicals and sustainable technologies, global PGM balances continue to be shaped more by supply limitations than by changes in demand.
Platinum is forecast to remain in deficit for a fourth consecutive year in 2026, even as demand is expected to ease by about 8%. The report shows the gap between supply and demand continues to be driven largely by weaker availability of primary supply, particularly from South Africa and Russia.
Primary supply refers to metal produced through mining and initial ore processing, rather than recycled material recovered from sources such as used automotive catalytic converters. It is the main source of PGMs, while secondary supply from recycling also contributes significantly to overall supply.
South Africa still accounts for a significant share of global PGM supply, with lower mine shipments contributing to tighter market conditions.
Primary supply is expected to contract further due to reduced output from South African operations alongside weaker production from Russia. The reduction in mine supply has limited the market’s ability to respond to stronger price signals, including platinum’s record high earlier this year.
Platinum remains the most exposed metal due to South Africa’s dominant production base. Even with higher recycling volumes, the report shows the secondary supply has not been enough to offset weaker mine output.
PGM prices have risen over the past year, with platinum reaching an all-time high in January 2026.
The report attributes the price environment to constrained availability across several metals, alongside increased investor interest linked to industrial activity and energy transition demand.
The report also showed demand patterns in the automotive sector continue to shift as electric vehicle (EV) adoption increases.
Use of palladium and rhodium in autocatalysts is gradually easing as EV penetration reduces demand for internal combustion engine vehicles. However, the transition is uneven, with hybrid vehicles and emissions regulations in Europe continuing to support demand for PGMs in transport applications.
This has slowed the adjustment downward in overall automotive demand compared with earlier expectations.
Meanwhile, the report showed recycling of PGMs from used automotive catalytic converters continued to rise, supported by higher prices and improved recovery rates.
However, recycling volumes are insufficient to offset weaker primary supply from South Africa and Russia. Platinum remains in deficit as a result, while palladium and rhodium are moving closer to balance, with small surpluses possible.
Outside the automotive sector, demand is increasing in industrial and energy-related applications.
Ruthenium demand is linked to data storage technologies, while iridium demand is rising in proton exchange membrane electrolysers used in hydrogen production.
These applications continue to broaden the demand base for PGMs beyond traditional automotive use.
According to the report, the outlook points to continued tight conditions in global PGM markets, with platinum and several other metals expected to remain in deficit.
South Africa remains central to global supply dynamics, given its large share of production. Changes in output from the region continue to have a direct impact on global balances and price direction.
“While demand patterns continue to evolve, supply conditions remain the dominant factor shaping the market in the near term.”
Business Day