The PGM complex traded lower across the board, with palladium falling 0.9% to $1,245/oz and platinum declining 0.68%. Rhodium was the outlier, holding steady at $5,200/oz as supply disruptions in South Africa constrained availability for the minor metal.
Platinum's weekly decline of 7.5% makes it the worst-performing PGM this week. The sell-off accelerated after the European Commission's proposed emissions standards update signaled no additional support for diesel technology, which had been seen as a potential demand source for platinum.
Investment demand has weakened significantly. Platinum ETF holdings have declined 5% this quarter, with net outflows of 120,000 ounces. The speculative positioning on NYMEX has shifted from net long to near-neutral, removing a source of price support.
Jewelry demand has shown resilience, particularly in China and India, where platinum jewelry fabrication increased 6% year-on-year in Q1. This provides a floor for prices but is insufficient to offset the automotive headwinds.
The WPIC's deficit forecast for 2026 is the first annual deficit since 2020, driven by declining mine output and steady industrial demand from the glass and chemical sectors, which together consume 25% of global platinum supply.
The 7.5% weekly decline is overdone relative to the fundamental deficit picture. For buyers managing PGM exposure, consider shifting some palladium hedges to platinum, given platinum's more favorable supply-demand balance and its extreme discount to both gold and palladium.