Brazil Platinum Market

brazil is a major producer of platinum and is expected to remain the world’s largest producer of the metal for years to come. despite short-term dislocations, the outlook for brazil’s platinum market remains strong, with robust demand and sustained production and exploration activity. the platinum space accounts for 24% of brazil’s total mining output, and as ongoing efforts are made to reduce diesel emissions and enhance air quality, platinum demand has been bullish. expectedly, the long-term trend in brazil platinum demand is for an increase in years to come. the main applications of platinum are in autocatalysis, jewellery and industrial uses. jewellery accounts for 30% of total demand and as far as platinum demand in brazil is concerned, the likelihood of growth in demand is expected to arise from the automotive sector. currently, the diesel euro 5 and 6 standards are set to come into force and with the transition of motor vehicles to electric, the industry will need platinum as a component for the catalytic converters to control pollution. brasil is expected to be a major contributor towards this demand. furthermore, china’s increasing presence in the platinum space is another factor that would aid the growth and outlook of the industry in brazil. the chinese government is aiming to surpass the us as the largest platinum consuming nation in the world by 2025 and the world’s leading car manufacturer, volkswagen has its largest production base in china. also, with the 2008 brazilian global recession, the brazilian real was devalued from 1.3usd to 2.8usd, leading to an increase in the demand of brazilian platinum jewellery exports to attract cheap dollars, which has greatly buoyed demand in the region. in conclusion, brazil is the world’s largest producer of platinum and with various bullish demand drivers, the outlook for the sector remains optimistic. also, with major initiatives taken by the government to enhance its infrastructure and economy, platinum producers are set to benefit in the years to come.