Platinum market tightness persists despite the over> 50% year-to-date price increase incentivising some sellbacks by investors and initially easing tariff risks supporting a reduction (from peak) of exchange stocks.In aggregate, around 400 koz of metal has been injected into the market, yet, 3-month lease rates recently exceeded 25%, there is strong backwardation in the London OTC market and platinum sponge is trading at a premium to ingot. Tightness is expected to continue as the reemergence of tariff fears has reversed exchange stock outflows, and robust platinum imports into China continue.WPIC believes that at current prices any reduction in lease rates is likely to require a shift by end users to purchasing from leasing and / or increased recycling or mine supply, the latter potentially materialising in Q4 2025.
