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WPIC: Platinum to Hit Third Annual Deficit as Supply Fails to Meet Demand

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Platinum is heading for a third consecutive annual deficit in 2025, with the World Platinum Investment Council (WPIC) projecting an 850,000 ounce shortfall as demand continues to outpace weak mine supply.

In its latest Platinum Quarterly, the WPIC states that despite a 22 percent year-on-year decline in demand, a lack of metal is expected to create a supply shortfall that’s only 13 percent lower than 2024’s 968,000 ounce shortfall.

Its call comes amid a price breakout for platinum, which pushed past US$1,450 per ounce in July.

Why is the platinum market in deficit?

The biggest challenge for platinum has been weak refined production, which slipped to 1.45 million ounces during the quarter from 1.54 million ounces produced during the same time last year.

This has led the WPIC to predict a 6 percent decrease in primary supply to 5.43 million ounces, down from the 5.76 million ounces produced in 2024. Output declines in top producer South Africa have had outsized effects on supply, as Q1 output came in at just 713,000 ounces, as heavy rainfalls negatively impacted production.

Although output grew to 1.05 million ounces in the second quarter, it was still 8 percent lower than in Q2 2024.

Additional decreases to output are also expected in Zimbabwe and North America, slipping 4 percent and 26 percent, respectively. However, Russia is set to see a 1 percent rise in output, increasing to 686,000 ounces from 677,000 in 2024.

On a more positive note, recycling supply saw an increase to 423,000 ounces during Q2 from 379,000 reported in 2024. This has led the WPIC to predict a 6 percent annual increase to 1.6 million ounces from 1.52 million last year.

The majority of this increase comes from growth in automotive recycling, aided by higher platinum group basket prices. However, the WPIC notes that despite the growth, recycling will remain depressed compared to historic levels.

The WPIC predicts an overall supply decrease of 3 percent in 2025 to 7.03 million ounces, from 7.28 million ounces in 2024. With three years of deficits, the group is also expecting further drawdowns of above-ground stocks with a 22 percent decrease to 2.98 million ounces, representing four and a half months of demand coverage.

In recent years, stockpiles have fallen from 5.51 million ounces in 2022 to 4.8 million ounces in 2023 and 3.83 million ounces in 2024.

“I don’t think we’re going to see any meaningful mine supply response at these levels. It’s also worth bearing in mind that these are, for the most part, deep-level underground mines. So even if we had another 50 percent increase in the basket price, you’re still not going to see a supply response over the near to medium term,” he said.

Watch Sterck discuss the platinum market.

He went on to explain that development times for mining operations will take several years and wouldn’t be possible on time frames shorter than 18 months.

“Recycling is definitely much more price elastic than mine supply over the near to medium term,” Sterck said.

However, he added that while people tend to scrap vehicles at a consistent rate, the pace and overall supply entering the market from the auto sector is constrained.

“Yes, we’ve seen quite a big increase in the platinum price year to date, but it’s not the main driver of the economics for those scrap aggregators and recyclers. It’s really more of a palladium story, even more so than rhodium. So, you need a sustained increase in palladium prices to drive a meaningful change there,” Sterck said.

Demand to weaken in 2025, jewelry a bright spot

Despite the expected deficit, the WPIC expects demand to weaken this year.

Q2 saw automotive demand fall to 769,000 ounces, down from 788,000 ounces in the year-ago period.

The WPIC’s expectation is that the auto sector will require 3.03 million ounces of platinum in 2025, a 3 percent decrease from the 3.11 million ounces needed in 2024. Likewise, the council is expecting a decrease in industrial demand for the metal as consumption drops off by 22 percent to 1.9 million, down from 2.42 million ounces last year.

Jewelry demand, however, has been on the rise, with the expectation that it will increase by 11 percent to 2.23 million ounces in 2025. The WPIC suggests the higher growth is owed to its discount relative to gold, and notes that it is seeing the most substantial increase in China — fabrication is seen growing 42 percent in 2025 to 585,000 ounces.

“What’s driving that increase has been fabrication funded by wholesalers, and they’re promoting platinum because they’ve seen a huge drop in their gold jewelry sales,” Sterck explained.

Despite an increase in holdings of bars, coins and exchange-traded funds, overall investment demand was dragged down in Q2 by a 317,000 ounce decrease in stocks held in exchanges due to tariff-related concerns.

Sterck said ongoing uncertainty in the platinum market earlier this year caused physical metal to shift from overseas markets into the US as traders began to worry about tariffs being applied.

Although movement reversed as traders were told tariffs wouldn’t be applied, fears were later stoked when copper tariffs were announced, and an “ideological disconnect” between the White House and South Africa emerged.

“Given that the current US administration has shown that it is willing to use tariffs as a kind of stick, if you like, for enacting foreign policy, you kind of come back to this sort of whole situation where there’s a non-zero chance of platinum being subject to tariffs in the US,” Sterck commented during the conversation.

Overall, the WPIC expects total platinum demand to drop by 4 percent year-on-year in 2025 to 7.88 million ounces.

Will the platinum price rise further in 2025?

Fundamentals should remain the primary driver for platinum. Despite weakening demand through the first half of 2025, a structural deficit in the market still exists due to a lack of supply to close the gap.

However, Sterck suggested the mining supply is likely to increase before the end of the year.

“This year was particularly accentuated by flooding in South Africa during the first quarter of the year, so we do expect a bit of an increase in mining supply,” he said. However, he also noted that until there are more significant changes to the amount of supply, the price conditions aren’t likely to change much.

“Fundamentally, at the moment, it just appears that the platinum price at current levels isn’t sufficient to attract enough metal into the market to really ease those market conditions,” Sterck noted.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Canada’s First Set of Nation-Building Projects Paves Way for Mining, Energy Operations

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Canadian Prime Minister Mark Carney has announced the country’s first five nation-building projects.

In March and April, the Build Canada Strong platform was a cornerstone of Carney’s election campaign, which came amid increasing trade tensions between Canada and the US. Among his promises was to create a Major Projects Office (MPO) that would review projects deemed to be in the national interest.

That office was established over the summer, with a release saying it would be headquartered in Calgary and overseen by former TransAlta (TSX:TA,NYSE:TSE) and Trans Mountain CEO Dawn Farrell.

The MPO was created as part of a shift in the regulatory framework for approving infrastructure and resource projects in Canada. Part of that will involve streamlining reviews and assessments, as well as reducing duplication between the federal and provincial governments, an issue that has hindered investment in Canada over the last 20 years.

“One of many studies has shown that the regulatory requirements in Canada have increased by more than 40 percent since 2006 and that’s been suppressing investment growth by 9 percent,” Carney said on Thursday (September 11).

In his statement, the prime minister introduced the first tranche of projects, and suggested the second will be announced before the Canadian Football League’s Grey Cup match, scheduled for November 16.

He also outlined criteria for projects to be covered by the MPO. They must be in the national interest, and must strengthen Canada’s autonomy, resilience and security; they must also have clear benefits for Canadians.

The first group of projects selected by the MPO has already seen significant development.

The prime minister noted that they have already been through extensive consultation with Indigenous communities, and have worked with provincial and territorial governments to meet necessary regulatory standards.

For these, Carney said the goal is for the MPO to get them across the finish line.

“In some cases, they are in the last stages of regulatory approvals. In most cases, there is some aspect of the financing or support packages for the projects that remain to be determined,” he said.

Mining, energy projects highlighted in first tranche

Among the first five projects featured are three involving Canada’s mining and energy sectors:

        Additionally, the MPO has committed to supporting the Darlington New Nuclear Project in Clarington, Ontario. This project aims to develop the first small modular reactor in a G7 country.

        The MPO will also help speed up the expansion of the Contrecour Terminal container project at the Port of Montreal. This expansion is expected to boost shipping volumes along the St. Lawrence Seaway.

        A project that could be included in a future announcement is the Pathways Plus carbon capture project, which the prime minister said will eventually lead to further oil sands development and the construction of a pipeline to reach markets beyond the US. Additionally, Carney said the MPO is looking at upgrades to the Port of Churchill, as well as an Arctic economic and security corridor, a high-speed rail corridor between Toronto and Québec City and Wind West Atlantic Energy, which would provide wind power to the provinces on the Atlantic coast.

        Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

        This post appeared first on investingnews.com

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        Trump administration ramps up pressure on Labor Department with data probe

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        The Labor Department has announced an inquiry into the Bureau of Labor Statistics over recent changes to its data practices.

        In a letter published Wednesday, the office of the inspector general for the Labor Department cited the BLS’ recent decision to reduce data collection activities for two key inflation reports, as well as the large downward revision in employment estimates it announced Tuesday. It said it is reviewing the ‘challenges’ the agency has faced ‘in collecting and reporting closely watched economic data.’

        The probe comes one month after President Donald Trump fired the head of the BLS as part of a broader pressure campaign that critics say has risked politicizing a part of the government that has long played a crucial role in the business world. The BLS, which is tasked with collecting data on economic indicators such as jobs and inflation, had generally been left alone by previous administrations.

        But Trump began zeroing in on the BLS as his frustrations with the Federal Reserve mounted, coinciding with economic numbers that started to warn about a broader U.S. slowdown.

        Since then, the labor market has slowed considerably. Just before the head of the BLS was fired, the department released a weaker-than-expected jobs report, citing claims of data manipulation that critics say are unfounded.

        Federal Reserve Chair Jerome Powell, another frequent target of Trump’s, has said Fed policymakers are ‘getting the data that we need to do our jobs’ and stressed the importance of the federal statistical agencies.

        ‘The government data is really the gold standard in data,’ he added. ‘We need it to be good and to be able to rely on it.’

        Trump then nominated E.J. Antoni, an economist with the far-right Heritage Foundation, as the new head of the BLS, a move many economists have criticized.

        Trump and other BLS critics have focused on the department’s revisions to its reports, a practice that dates back decades and has been generally seen as a necessary part of the challenge of collecting near-term economic data. It has also faced other challenges in data collection, including budget challenges and low response rates to its collection efforts.

        The BLS previously said the decision to reduce inflation data surveys was necessary given existing budget constraints. Meanwhile, mainstream economists say the latest downward revisions — while large — are part of a routine annual process known as benchmarking.

        While response rates to the bureau’s surveys have been declining, researchers recently found that revisions and falling response rates did not reduce the reliability of the jobs and inflation reports.

        This post appeared first on NBC NEWS

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        Clem Chambers: Gold’s Top Driver Now, Silver’s Coming Boom Phase

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        Clem Chambers, CEO of aNewFN.com, shares his outlook for gold and silver.

        He also shares his thoughts on the broader US economy.

        ‘We’re in an elevated inflationary situation, QE is coming, interest rates are coming down, the dollar’s going to fall hard and precious metals are going to go up,’ Chambers emphasized.

        Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

        This post appeared first on investingnews.com

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        Mart Wolbert: Uranium Prices, Supply, Demand — What’s Next as Mindset Shifts

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        Mart Wolbert, analyst at Contrarian Codex, is seeing a uranium mindset shift as more investors take stock of the growing supply/demand imbalance in the market.

        He explains how he’s approaching uranium stocks and shares his price outlook.

        Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

        This post appeared first on investingnews.com

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        Questcorp Mining Provides Update on Its Maiden Drill Program at La Union

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        Questcorp Mining Inc. (CSE: QQQ,OTC:QQCMF) (OTCQB: QQCMF) (FSE: D910) (the ‘Company’ or ‘Questcorp’) is pleased to provide an update on the Phase I drilling program at its La Union Gold and Silver project in northwest Sonora, Mexico. Drill holes have now been completed at two of the 4 target areas:

        • The initial hole was completed beneath the historic Union Mine itself, intersecting the favourable carbonaceous Clemente and Caborca formations, including the microconglomeratic carbonate unit which hosted mineralization at the bottom of the past producing Union Mine.
        • Drilling then shifted focus to the El Cobre Mine area and the Union Norte Mine area, testing vertical feeder zones above the Clemente formation dolomites and carbonaceous sandstones. Hole two intersected more quartzites than interpreted from the geophysics, with the quartzites carrying more extensive hematitic oxides, possibly indicative of oxide gold mineralization potentially related to sulfides which have been oxidized through supergene weathering.

        Saf Dhillon, President and Chief Executive Officer, states: ‘The drilling is indicating oxidation is consistent with past mining and targets are coming along with a positive exploration drilling so far. The drilling is intersecting more quartzite than expected which is favorable for fracture-controlled mineralization. The Riverside operations team is progressing the current exploration program working with the surface rancher and the drilling company to efficiently progress a high-quality exploration program.’

        Drilling has now moved to the Famosa Target to progress exploration program. The Mexico Mining Ministry has approved many permits and are actively supporting the environmentally, socially conscious mineral exploration practices as a key aspect for the new Mexican government initiatives.

        The technical content of this news release has been reviewed and approved by R. Tim Henneberry’, P.Geo (BC) a Director of the Company and a Qualified Person under National Instrument 43-101.

        About Questcorp Mining Inc.

        Questcorp Mining is engaged in the business of the acquisition and exploration of mineral properties in North America, with the objective of locating and developing economic precious and base metals properties of merit. The company holds an option to acquire an undivided 100-per-cent interest in and to mineral claims totalling 1,168.09 hectares comprising the North Island copper property, on Vancouver Island, B.C., subject to a royalty obligation. The company also holds an option to acquire an undivided 100-per-cent interest in and to mineral claims totalling 2,520.2 hectares comprising the La Union project located in Sonora, Mexico, subject to a royalty obligation.

        ON BEHALF OF THE BOARD OF DIRECTORS,

        Saf Dhillon
        President & CEO

        Questcorp Mining Inc.
        saf@questcorpmining.ca
        Tel. (604-484-3031)

        Suite 550, 800 West Pender Street
        Vancouver, British Columbia
        V6C 2V6.

        Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding completion of survey work at the North Island Copper project. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change.

        To view the source version of this press release, please visit https://www.newsfilecorp.com/release/265741

        News Provided by Newsfile via QuoteMedia

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        Kenvue stock drops 10% on report RFK Jr. will link autism to Tylenol use during pregnancy

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        Shares of Kenvue fell more than 10% on Friday after a report that Health Secretary Robert F. Kennedy Jr. will likely link autism to the use of the company’s pain medication Tylenol in pregnant women.

        HHS will release the report that could draw that link this month, The Wall Street Journal reported on Friday.

        That report will also suggest a medicine derived from folate — a water-soluble vitamin — can be used to treat symptoms of the developmental disorder in some people, according to the Journal.

        In a statement, an HHS spokesperson said, “We are using gold-standard science to get to the bottom of America’s unprecedented rise in autism rates.”

        “Until we release the final report, any claims about its contents are nothing more than speculation,” they added.

        Tylenol could be the latest widely used and accepted treatment that Kennedy has undermined at the helm of HHS, which oversees federal health agencies that regulate drugs and other therapies. Kennedy has also taken steps to change vaccine policy in the U.S., and has amplified false claims about safe and effective shots that use mRNA technology.

        Kennedy has made the disorder a key focus of HHS, pledging in April that the agency will “know what has caused the autism epidemic” by September and eliminate exposures. He also said that month that the agency has launched a “massive testing and research effort” involving hundreds of scientists worldwide that will determine the cause.

        In a statement, Kenvue said it has “continuously evaluated the science and [continues] to believe there is no causal link” between the use of acetaminophen, the generic name for Tylenol, during pregnancy and autism.

        The company added that the Food and Drug Administration and leading medical organizations “agree on the safety” of the drug, its use during pregnancy and the information provided on the Tylenol label.

        The FDA website says the agency has not found “clear evidence” that appropriate use of acetaminophen during pregnancy causes “adverse pregnancy, birth, neurobehavioral, or developmental outcomes.” But the FDA said it advises pregnant women to speak with their health-care providers before using over-the-counter drugs.

        The American College of Obstetricians and Gynecologists maintains that acetaminophen is safe during pregnancy when taken as directed and after consulting a health-care provider.

        Some previous studies have suggested the drug poses risks to fetal development, and some parents have brought lawsuits claiming that they gave birth to children with autism after using it.

        But a federal judge in Manhattan ruled in 2023 that some of those lawsuits lacked scientific evidence and later ended the litigation in 2024. Some research has also found no association between acetaminophen use and autism.

        In a note on Friday, BNP Paribas analyst Navann Ty said the firm believes the “hurdle to proving causation [between the drug and autism] is high, particularly given that the litigation previously concluded in Kenvue’s favor.”

        This post appeared first on NBC NEWS

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        Editor’s Picks: Gold Sets New Price Record, Silver Hits 14 Year High

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        It’s been a historic week for precious metals, with gold nearly hitting the US$3,600 per ounce mark, and silver passing US$41 per ounce for the first time since 2011.

        The gold price spent the summer in a consolidation phase, and part of what’s spurring its latest move is expectations that the US Federal Reserve will lower interest rates at its next meeting.

        The central bank has held rates steady since December 2024, even as President Donald Trump places increasing pressure on Fed Chair Jerome Powell to cut.

        Powell’s August 22 speech in Jackson Hole, Wyoming, began stoking anticipation of a cut, and August US jobs data, released on Friday (September 5), has all but guaranteed it will happen.

        Non-farm payrolls were up by 22,000, significantly lower than the 75,000 expected by economists. Meanwhile, the country’s unemployment rate came in at 4.3 percent.

        CME Group’s (NASDAQ:CME) FedWatch tool now shows a 90.2 percent probability of a 25 basis point rate cut in September, with a 9.8 percent probability of a 50 basis point reduction.

        Bond market turmoil also helped move the gold price this week.

        Yields for 30 year US bonds rose to nearly 5 percent midway through the period, their highest level since mid-July, on the back of a variety of concerns, including tariffs, inflation and Fed independence.

        Globally the situation was even more tumultuous, with 30 year UK bond yields reaching their highest point since 1998; meanwhile, 30 year bond yields for German, French and Dutch bonds rose to levels not seen since 2011. In Japan, 30 year bond yields hit a record high.

        Tariff developments have also created uncertainty this past week.

        After an appeals court upheld a ruling that many of Trump’s tariffs are illegal, the president’s administration asked the Supreme Court to fast track its review of the decision.

        Going back to gold and silver, their recent price activity is certainly raising questions about what’s next. The broad consensus among the experts focused on the sector is positive, but the metals are beginning to get more mainstream attention too.

        Notably, investment bank Goldman Sachs (NYSE:GS) now has a gold price prediction of US$4,000 by mid-2026, although the firm notes that the yellow metal could rise to nearly US$5,000 if just 1 percent of private investors shift from treasuries to gold.

        ‘If 1 per cent of the privately owned US Treasury market were to flow to gold, the gold price would rise to nearly $5,000 per troy ounce’ — Daan Struyven, Goldman Sachs

        Bullet briefing — Hoffman on gold, Hathaway on silver

        It’s been a short week, at least in North America, so instead of the usual news stories this bullet briefing will highlight a couple of my favorite recent interviews.

        Nothing in gold’s path

        First is Ken Hoffman of Red Cloud Securities. It was my first time speaking with Hoffman, and he made a compelling case for how gold could get to US$10,000.

        Watch the full interview with Hoffman above.

        Silver a ‘smouldering volcano’

        Next is John Hathaway of Sprott. He shared what he thinks will be the trigger for gold’s next move higher — a major decline in equities — but he also discussed his bullish outlook on silver, which moved past US$40 not long after our interview.

        Watch the full interview with Hathaway above.

        We’re definitely entering uncharted territory right now, and I want to make sure I bring you commentary from the experts you want to hear from — drop a comment below to let me know who you’d like me to talk to, and also what questions you have.

        Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

        This post appeared first on investingnews.com

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