Platinum, an important metal for the automotive industry, surged more than 27% month-to-date in June, topping the commodity charts with a year-to-date gain of over 45%.
Analysts attribute the sharp rally to a renewed rise in market demand, which has squeezed the availability of tradable platinum on global commodity exchanges.
Driving the surge is a stockpiling race between the United States and China, as both countries scramble to secure supplies amid fears that new tariffs could cause major disruptions.
“We see stockpiling in China competing with stockpiling in the US, both contributing to a depletion in global inventories,” said Daniel Ghali, commodity strategist at TD Securities.
Since tariff tensions between the two economic powers intensified in the first and second quarters of 2025, platinum spot markets in London and Zurich have grown noticeably tighter, after nearly half a million ounces were moved into US warehouses.
In China, customs data shows that platinum imports jumped 47% in April, driven in part by a spike in demand for platinum jewelry as consumers turned to it as an alternative during a gold price rally.
This shift in demand, along with tighter supply, has kept prices climbing. As of June 27, platinum is trading above $1,300 an ounce, raising concerns that the high price could soon trickle into production costs for carmakers.
Automotive use
Platinum plays a crucial role in the automotive industry, where it is used in catalytic converters for gasoline and diesel vehicles.
- Converter devices help reduce pollution by turning harmful gases such as carbon monoxide, hydrocarbons, and nitrogen oxides into less harmful substances like carbon dioxide, nitrogen, and water vapor.
As global demand for cleaner, more environmentally friendly vehicles continues to grow, the industrial use of platinum has also increased.
Unlike palladium, which serves a similar function in catalytic converters, platinum also enjoys strong demand in the jewelry market, especially when gold prices rise.
Analysts warn that the current stockpiling could eventually push prices higher, trickling into production costs for automakers.
If sustained, this trend might trickle into car prices for consumers worldwide, especially since electric vehicles are not yet widely adopted.
Market trend
Platinum began 2025 trading at $910.70 per ounce and closed January on a strong note at $1,050.10.
- Though February saw a brief pullback, bullish momentum returned by May.
- The real turning point came in mid-April, when demand surged in China’s jewelry market as buyers turned to platinum as a more affordable alternative to gold.
- This renewed interest, combined with aggressive stockpiling by the US, has pushed prices even higher, driving the metal above $1,300 per ounce by late June.
