BMI Lowers 2026 Platinum and Palladium Forecasts Amid Slower Car Sales and Rising South African Supply
BMI trimmed its 2026 price forecasts for platinum to $1,900/oz and palladium to $1,400/oz, citing a 1% decline in global vehicle sales and a faster-than‑expected recovery in South African mine output. The agency now expects platinum autocatalyst demand to fall 4% to 2.9 million oz, while palladium demand is projected to be 102,000 oz short of supply. South African production is lifted to 4.3 million oz, driven largely by Valterra Platinum and a 12% rise in first‑half output from Anglo American Platinum.
BMI trimmed its 2026 price forecasts for platinum to $1,900/oz and palladium to $1,400/oz, citing a 1% decline in global vehicle sales and a faster-than‑expected recovery in South African mine output. The agency now expects platinum autocatalyst demand to fall 4% to 2.9 million oz, while palladium demand is projected to be 102,000 oz short of supply. South African production is lifted to 4.3 million oz, driven largely by Valterra Platinum and a 12% rise in first‑half output from Anglo American Platinum.
The downward price outlook will likely pressure spot and lease rates for platinum and palladium in the short‑to‑medium term, potentially accelerating inventory drawdowns and tightening liquidity. Traders may see increased volatility as the market adjusts to the revised demand and supply dynamics, with a possible shift toward higher‑grade, lower‑cost sources.