Supply Shortage and Increased Investment Demand Drive Surge
The international price of platinum soared by more than 120% in 2025 alone, marking the highest annual increase in 38 years since 1987.
According to the New York Mercantile Exchange on the 31st (local time), platinum futures were traded at around $2,148 per troy ounce (approximately 3.11 million won) on this day. On the 26th of last month, prices hit an all-time high of $2,534.70 (about 3.6677 million won), rising 34% in just one month. The annual increase reached a staggering 121%. Palladium, another platinum group metal, also surged by 80% this year.
Analysts attribute these results to a combination of factors: increased investment demand for precious metals such as gold and silver, a supply shortage, and the European Union’s reversal of its plan to ban sales of internal combustion engine vehicles by 2035.
Platinum and palladium are used in catalytic converters, which control exhaust emissions. This year, uncertainties surrounding U.S. tariff policies and the rally in gold and silver prices offset the long-term negative impact of the spread of electric vehicles, pushing up the prices of platinum and palladium. Additionally, the European Union’s decision on the 16th of last month to withdraw its plan to fully ban sales of internal combustion engine vehicles from 2035 was considered a positive factor, as it allowed for continued sales of some internal combustion engine vehicles. Mitsubishi analysts commented, “This extends the use of catalytic converters, effectively giving a steroid boost to platinum group metals. Since the extension period for internal combustion vehicle sales is not limited to a specific point in time, and the EU is expected to continue demanding stricter emission standards, the content of platinum group metals used in catalysts will inevitably increase.”
Furthermore, the U.S. administration’s decision to include platinum and palladium on its list of “critical minerals” essential for the economy and national security also played a role. With tariffs anticipated, large volumes of physical supply flowed into the United States in advance, leading to tighter supply in spot markets elsewhere. Reduced production in South Africa, the main producer, due to power shortages, aging mine infrastructure, and decreased mining investment, also contributed to the situation.
The launch of platinum group metal futures trading in China, the world’s largest consumer of these metals and a country heavily reliant on imports, in November further accelerated the price increase. As a large influx of speculative capital entered the market, the Guangzhou Futures Exchange even adjusted its price limits.
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