KEY POINTS
- Platinum posted a 244,000-ounce Q2 surplus.
- 2026 surplus forecast at 265,000 ounces.
- Inventories may cover only 3.4 months of demand.
The global platinum market recorded a surplus for the second consecutive quarter, as weaker demand and changes in investment flows pushed supply ahead of consumption.
According to the latest Platinum Quarterly report from the World Platinum Investment Council (WPIC), the market posted a surplus of 244,000 ounces in the second quarter of 2026.
Total platinum supply was broadly stable compared with the same period last year, rising 1% to 1.91 million ounces. At the same time, total demand dropped by 16%, or about 308,000 ounces, to 1.66 million ounces.
The combination of steady supply and weaker demand created a significant quarterly surplus, marking a shift from the tight market conditions seen in previous years.
2026 surplus now expected
The WPIC has also revised its full-year outlook, forecasting a platinum surplus of about 265,000 ounces for 2026.
That represents a major change from its earlier projection of a 297,000-ounce deficit. The swing of roughly 562,000 ounces is largely linked to investment outflows during the first half of the year.
Investors have reduced their exposure to platinum amid economic and geopolitical uncertainty, increasing the amount of metal available to the wider market.
The projected surplus also comes after three consecutive years in which platinum demand significantly exceeded available supply.
Despite the return to surplus, the platinum market remains vulnerable because inventories are still heavily depleted.
The WPIC expects above-ground platinum stocks to provide only about 3.4 months of global demand by the end of 2026.
That means the current surplus should not be interpreted as a sign that platinum is suddenly in abundant supply. Years of deficits have already reduced inventories, leaving relatively little metal available to absorb a sudden increase in demand or an unexpected disruption to production.
The low level of inventories could therefore continue to support prices, particularly if investment demand returns or supply from major producing countries is disrupted.
Platinum prices are also expected to remain influenced by broader trends in the precious metals market.
If interest rate increases are less aggressive than expected, or fail to materialise, investor interest in precious metals could strengthen. A more favourable interest rate environment could support platinum alongside gold and other precious metals.
