Theme of the Day: London Platinum Week Review - Heraeus

The platinum price started to rally during London Platinum Week last year, and it has been a remarkable 12 months since then. Currently, PGM prices are much higher, although they have dropped back from their peak levels. In the year to May 2026 platinum prices rose by approximately 80%, from $1,070/oz to $1,920/oz. Over the same period, palladium prices rose around 40% from $1,010/oz to $1,420/oz while rhodium increased by roughly 80% from $5,500/oz to $9,900/oz. These jumps have led to expanded margins for PGM producers. Higher prices are encouraging junior companies to proceed with their projects, the most advanced of which is the Platreef project in South Africa which has recently started production. Tharisa’s Karo project in Zimbabwe is under construction and Southern Palladium’s Bengwenyama project in South Africa is progressing its DFS. Meanwhile, the major PGM producers are prioritising dividends but have brownfield options that could be developed to maintain output levels and offset long-term mine depletion. Updates on the situation in China included both positive and negative news. Investment in platinum bars remains robust and industrial demand is expected to be steady. Auto-catalyst recycling is estimated to continue to expand, although not as fast as last year after changes to the subsidy and scrappage scheme. There was mixed news on automotive demand with the positive being that the China 7 emissions standard, which is still to be officially announced, is anticipated to require modestly higher PGM loadings. However, the loadings in the current auto-catalysts are being thrifted and there remains the challenge of BEVs. China exported 805k cars in Apr, up 87% YoY and an increase on the 748k units in Mar. EVs, including PHEVs, accounted for 52.7% (roughly 420k) of vehicle exports in Apr, the first time new-energy vehicles have reached over 50% of total exports. domestic passenger car sales in Apr dropped 26% YoY to 1.3mn. This is partly due to the Chinese government stepping back from direct subsidies of EVs. There was also a focus on the small PGMs and the diverse uses that are driving demand, including opportunities in the hydrogen economy which is a focus in China’s latest 5-year plan and in Europe where several large projects are being implemented. The platinum price has not been following its typical seasonal script. The platinum price tends to do well over the first months of the year up to around May. After this, the price generally softens before picking up again in Q4. This was not the case last year though, when platinum declined into Apr and then rallied strongly from mid-May and through the second half of the year. At present, the price is still consolidating after hitting a record high at the end of Jan and this may continue for a while after such a dramatic hike in the price. India doubles import duties on platinum. On 13 May, the Indian government raised the import duty on platinum to 15.4%, up from 6.4%. Along with similar moves affecting gold and silver, the intention of the rise is to protect India’s balance of payments following increases in imported energy costs. Platinum imported for catalytic converter manufacturing remains part of the Import of Goods at Concessional Rate of Duty scheme, meaning duties on such imports attract the concessional rate of 7.5%. However, higher domestic spot platinum prices following duty increases are likely to affect auto manufacturers and raise costs.