PLATINUM DEMAND EXPLAINED: AUTOS, INDUSTRY & JEWELLERY

Platinum, a dense and highly valuable metal, plays a critical role in various sectors, notably automotive, industrial, and jewellery. As a rare, corrosion-resistant element, its chemical properties make it indispensable in several specialised applications. Global platinum demand fluctuates depending on technological developments, environmental regulations, economic conditions, and consumer preferences. These dynamics influence the strategies of investors, designers, manufacturers, and policymakers.

This article explores how platinum demand is structured across its three primary end markets: automotive, industrial, and jewellery. Each sector contributes uniquely to overall consumption, and their combined influence shapes the global platinum market landscape.

We examine how platinum's key characteristics — such as resistance to high temperatures, catalytic activity, and lustrous appearance — make it central to specific demand drivers, offering insights into the interconnected nature of global markets and commodity cycles.

The automotive sector has historically been — and continues to be — the largest single consumer of platinum, driven primarily by its use in catalytic converters. Catalytic converters are essential components installed in combustion engine vehicles to reduce harmful emissions. Platinum acts as a catalyst, enabling the conversion of carbon monoxide, hydrocarbons and nitrogen oxides into less harmful substances such as carbon dioxide, nitrogen and water.

Key Drivers of Automotive Demand:

• Emission regulations: Stricter global emission standards in regions like Europe and China have increased platinum loading per vehicle, boosting metal consumption.
• Diesel vehicles: Platinum remains the preferred catalyst for diesel engines due to its superior performance under high temperatures.
• Autocatalyst recycling: While increased recycling efficiency has offset some demand, the net requirement for primary platinum remains highly dependent on new vehicle production volumes.

Despite the rise of electric vehicles (EVs), which do not utilise platinum in their powertrain systems, demand from hybrid vehicles — which still use internal combustion engines — as well as heavy-duty diesel trucks, continues to support platinum's relevance. Moreover, as manufacturers develop hydrogen fuel cell vehicles, which do use platinum in their stacks, this could represent a new frontier for automotive demand.

It’s also worth mentioning that regional differences impact platinum demand. Europe, long a diesel-leaning market, has traditionally used more platinum per vehicle than North America or Asia. However, as diesel market share declines, especially in passenger cars, the auto industry faces a complex balancing act between material substitutions, policy shifts, and drivetrain transitions.

Platinum serves a wide array of industrial purposes across sectors such as petroleum refining, chemical production, electronics, and medical devices. Its exceptional resistance to chemical degradation and high melting point make it ideal for these demanding environments.

Major Industrial Uses:

• Chemical industry: Platinum is used as a catalyst in the production of nitric acid, a precursor to fertilisers and explosives, and in hydrogenation reactions in petrochemical processes.
• Petroleum refining: In the reforming of naphtha to high-octane gasoline components, platinum catalysts play a central role, especially in developed economies where clean fuel standards are enforced.
• Glass manufacturing: The production of high-purity speciality glass, such as LCDs or fibre optics, relies on platinum equipment and crucibles to withstand high processing temperatures and avoid contamination.
• Medical and electronics: Platinum is found in pacemakers, dental crowns, thermocouples, spark plugs and hard disks due to its excellent conductivity, biocompatibility, and corrosion resistance.

Overall, industrial demand for platinum tends to rise in line with broader economic activity and infrastructure investment. Emerging technologies, particularly in hydrogen electrolysis and green chemistry, are also sustaining demand. These new applications emphasise platinum’s centrality in achieving global decarbonisation goals, particularly where high-efficiency catalysts are required.

However, industrial demand patterns can fluctuate significantly depending on capital expenditure cycles, regulatory shifts, availability of substitutes, and pricing comparisons between platinum and its sister metals (rhodium, palladium, iridium). For example, when platinum prices fall relative to palladium, substitution can occur in certain industrial catalysts, temporarily boosting platinum demand.

In summary, platinum’s flexibility and fundamental properties ensure it remains a critical input in both legacy industries and future-proof technologies, forming a strong pillar of total global demand.