Platinum Prices Ease After Reaching Highest Level in Over a Decade

The platinum market has entered a period of ease following a powerful climb that saw prices surge to their highest levels in over a decade. After hitting numbers at approximately US $1,432.60/oz in June 2025, the precious metal has eased to around US $1,360/oz as of today, marking a moderate decline but still maintaining strong year-to-date gains.

Demand Surge Led by China

This year’s climb was largely fuelled by a combination of explosive Chinese demand, speculative investor interest, and significant supply disruptions. In April alone, China imported over 11.5 metric tonnes of platinum the highest monthly volume in over a year. The surge in demand came from increased industrial use, strong jewelry purchases, and renewed investor interest in platinum as an undervalued alternative to gold and palladium. In particular, Chinese platinum jewelry demand rose by 15%, while investment demand climbed by over 40% during the first Quarter.

South Africa’s Supply Struggles Intensify Deficit

Simultaneously, supply constraints played a critical role in tightening the market. South Africa, which produces over 70% of the world’s platinum, faced disruptions due to poor weather, persistent load-shedding, and technical challenges. As a result, output declined by more than 10% year-over-year. According to the World Platinum Investment Council, the global platinum market recorded a structural deficit of 816,000 ounces in the first Quarter, with expectations of a full-year deficit nearing 1 million ounces.

Zimbabwe Offers Production Stability

Zimbabwe, the world’s third-largest platinum producer, has also contributed to the global supply story. Though its output is modest compared to South Africa’s, Zimbabwe has provided relative stability amid regional disruptions. Key producers like Zimplats, Unki, and Mimosa have maintained consistent production, supported by government policies that encourage value addition and infrastructure investment. Zimbabwe’s strategic reserves and expansion plans may further strengthen its role in stabilizing platinum supply in the near future.

Consolidation Likely Before Next Move

These dynamics sparked a speculative surge, driving prices rapidly upward as investors bet on tightening supplies and ongoing demand growth. However, as prices approached technical overbought levels in late June, profit-taking began to set in, resulting in the current pullback.

Despite the recent cooling, analysts suggest that platinum remains fundamentally supported. Unless there is a sudden reversal in Chinese demand or a major uptick in global production, prices are likely to remain elevated. The market now awaits fresh signals from both China’s economy and Southern Africa’s mining outlook to determine platinum’s next move.