Analysis of demand for platinum tends to focus on the automotive and jewellery sectors, while industrial demand is often overlooked. However, by 2021, the platinum industrial sector is expected to account for nearly 40% of total platinum demand (net of recovered supply). In recent years, platinum demand from the industrial sector has shown strong growth; The pre-epidemic compound annual growth rate (CAGR) from 2013 to 2019 was 6%, more than double the CAGR of global GDP over the same period and three times the CAGR of OECD industrial production.

The diversity of end-uses ensures that platinum demand in the industrial sector is benefiting from the strong economic recovery (from the low point of the epidemic) and fundamental growth from technological advances. Industrial demand for platinum is generally unaffected by price because the cost of the metal is basically a fraction of the cost of manufacturing it. Platinum demand is coming from three categories: products made from platinum, such as thermocouples and scaffolds; a small amount of replenishment when industrial catalysts and manufacturing equipment wear out; and large amounts of the metal needed for new plant capacity.

In 2021, platinum demand from the industrial sector is expected to exceed 2020 levels, rebounding 25 percent to 2.4 million ounces, or 13 percent above pre-epidemic levels, driven by demand from the refining, chemical and glass sectors. Significant capacity expansion in the chemical, glass and petroleum industries, particularly in China, has historically accelerated demand growth in the platinum industrial sector. China's oil refining capacity has proved to have nearly quadrupled in the past two decades to keep pace with rapid growth in domestic energy demand. We believe that capacity in these three areas will continue to increase beyond 2021.