NYMEX platinum futures for July delivery fell 2.17% to settle at $1,668.20/oz. The decline followed data showing European auto registrations fell 2.1% month-on-month in May, missing consensus expectations of flat growth. Platinum is a key autocatalyst metal alongside palladium and rhodium.
The broader PGM complex is under pressure. Palladium is down 0.78% to $1,264.50/oz, while rhodium — whose supply is more concentrated — has held relatively steady. The PGMs basket ratio is now at 1.24x, reflecting platinum's relative outperformance versus palladium this year.
Platinum substitution for palladium in gasoline autocatalysts remains a structural demand driver. However, the pace of substitution has slowed as automakers have largely completed the switchover in North American and European platforms. Incremental gains will come from China.
South African supply constraints provide a floor. Power utility Eskom has maintained Stage 4 load-shedding on average, reducing mine output. Anglo American Platinum reported a 3% decline in Q1 refined production due to smelter maintenance and power interruptions.
Platinum below $1,700 offers a reasonable entry for H2 coverage given the supply floor from South Africa and the substitution trend in autocatalysts. However, the auto demand headwind is real — wait for a test of $1,640 before adding significant volume.