A deepening supply deficit is providing structural support for platinum prices. South Africa, which accounts for roughly 70% of global platinum mine supply, reported a 3.5% year-over-year decline in Q2 2026 production. Eskom’s power grid reliability, rather than scheduled load-shedding, is the primary culprit.
Anglo American Platinum’s Mogalakwena mine, the world’s largest open-pit platinum mine, reported a 5% production drop due to unscheduled power outages at the concentrator plant. Sibanye-Stillwater’s Rustenburg operations also reported reduced throughput.
The WPIC’s revised deficit forecast of 300,000 ounces represents a significant escalation from the 120,000-ounce deficit projected at the start of 2026. Above-ground platinum stocks have drawn down to 3.2 million ounces, the lowest since 2020.
Investment demand is absorbing available supply. Platinum ETF holdings rose 2.3% this week to 3.8 million ounces, the highest level since early 2023. Bar and coin demand is also strong, particularly in Europe and Japan.
The platinum deficit is deepening faster than most forecasts predicted. South African supply disruptions are structural, not cyclical. Buyers should expect sustained upward pressure on prices and consider securing 12-month forward coverage now. The deficit will not be filled by recycling alone.