Demand for Platinum Group of Metals (PGMs) went down owing to increased substitution in the automotive and glass industries, favouring alternative metals over palladium and rhodium.
“As a result, exports of PGMs witnessed a substantial decline of 36.9%, in value terms, from US$2.2 billion in 2022 to US$1.4 billion in 2023,” said Dr John Mushayavanhu, Reserve Bank of Zimbabwe (RBZ) Governor while presenting the 2024 Monetary Policy Statement (MPS) in Harare yesterday.
The price decline for PGMs was mainly attributable to abundant supplies in the face of deteriorating global macroeconomic conditions which generated subdued demand.
Notably, palladium and rhodium prices experienced sharp contractions during the period despite the stability of platinum prices, leading to a decreased export value for the platinum group of metals (PGMs).
The decrease in mineral exports was predominantly caused by the continuous decline of key commodity prices, primarily influenced by the diminished global growth prospects.
Global demand for platinum group metals (PGMs) is forecast to taper off beyond 2030, despite a robust outlook for increasing automotive sales. – (Mining Index)
