Platinum prices extended their June rally as the auto sector demand outlook improved. European car registrations rose 4.2% month-over-month in May, according to ACEA data, with hybrid and diesel vehicles — which use platinum in catalytic converters — accounting for a larger share than expected.
The substitution trend is accelerating. With palladium trading at a significant premium to platinum, automakers are increasingly substituting platinum for palladium in gasoline vehicle catalytic converters. JPMorgan estimates that substitution added 250,000 ounces of platinum demand in 2025 and expects an additional 400,000 ounces in 2026.
South African supply constraints continue to support prices. Eskom’s ongoing power reliability issues have disrupted smelting operations at several major producers, including Sibanye-Stillwater and Anglo American Platinum. Load-shedding events in Q2 2026 affected an estimated 8% of total quarterly production.
Investment demand is also contributing to the rally. Platinum ETF holdings increased by 2.3% this week, with European and North American funds seeing the strongest inflows. Total platinum ETF holdings now stand at 3.8 million ounces.
Platinum’s supply-demand balance is tightening from both directions. South African power disruptions cap supply while auto sector recovery and substitution from palladium drive demand growth. Buyers should secure H2 volumes now — the WPIC projects a 300,000 oz deficit for 2026, which could push prices above $1,750.