The  global  platinum  deficit  is  predicted to weigh in at 120,000 oz in 2017, a larger shortfall 

than previously estimated, driven by a fall in supply, industry lobby group, the World Platinum 

Investment Council, said in its Platinum Quarterly Thursday. 

This  year  will  be  the  sixth  consecutive  year  of  deficit, with  total  supply from mining and 

recycling predicted to fall 4% year on year in 2017, WPIC added. 

Therefore, the   story  is  more  one  of  lower  supply  creating  a  deficit, rather  than  racing 

demand. 

The report said that  there  was a "marked  increase in the buying of platinum Exchange Trad

ed  Funds (ETFs)  in  the  final  quarter of 2016, which  saw net purchases 200,000 oz higher 

than in the previous quarter." 

Platinum is a key ingredient in diesel engine autocatalysts. 

"Demand from the  automotive sector defied some  expectations, ending  the  year up 1%. Th

e  report  reveals  that  year-on-year  platinum  demand from the Western Europe automotive 

sector has been higher in every quarter since the third quarter of 2015," WPIC said. 

Still, it wasn't all positive, with 2016 jewelery demand down 11% from 2015. 

"However, the Indian market  is expected  to continue  its  strong  growth with demand predicte

d to be up by more than 11% [in 2017]," the report said. 

India's  jewelry  sector  is  seen  as a  key  growth  market for platinum consumption by WPIC, 

one that is currently dominated by gold. 

Paul Wilson, CEO of WPIC said: "Should  investment  demand  in 2017  end up matching that 

of  2016, this  would  significantly  offset  the decrease  in total demand  currently forecast for 

2017."