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UPDATE 2-Platinum, palladium and rhodium in short supply –Johnson Matthey

 (Adds detail, quotes, tables, graphics)
    By Peter Hobson
    LONDON, Feb 10 (Reuters) - Platinum, palladium and rhodium
used by the auto industry to filter emissions from engine
exhausts were all in short supply last year, data from
specialist materials firm Johnson Matthey showed on
Wednesday, as prices for the metals soared.
    Supply shortfalls have driven rapid price gains, with    
platinum trading at six-year highs and rhodium RHOD-LON
and palladium close to record levels. 
    A shortfall is expected for palladium and rhodium this year
as well, the third consecutive annual deficit for rhodium and
the tenth for palladium, Johnson Matthey researcher Rupen
Raithatha said. 
    Platinum may see a third consecutive annual deficit in 2021,
depending on how much metal is stockpiled by investors, he said.
    All three metals are used in catalytic converters to reduce
harmful emissions, and tightening environmental regulation is
forcing auto makers to put more into each vehicle. Platinum is
also in demand by other industies, for jewellery and as an
investment. 
    
    
    Johnson Matthey is a leading autocatalyst manufacturer. 
    It said the 7 million-8 million ounce a year platinum market
was undersupplied by 390,000 ounces in 2020 after a shortfall of
301,000 ounces in 2019.
    The 10 million ounce a year palladium market saw a shortfall
of 606,000 ounces, down from 893,000 ounces in 2019.
    The 1 million ounce rhodium market was undersupplied by
84,000 ounces last year, up from 38,000 ounces in 2019.

    The company said its numbers for 2020 were preliminary
estimates.
    
    
    Both demand and supply were curtailed by the coronavirus
pandemic, which disrupted mining and recycling and depressed
industrial activity and vehicle and jewellery sales. 
    Supply was particularly hard hit due to the closure for
several months of a major processing plant run by Anglo American
Platinum (Amplats) in South Africa. 
    Raithatha said he expected both supply and demand to bounce
back strongly this year as the virus is contained. 
    He said around 1 million ounces of unprocessed inventory had
built up while the Amplats plant was closed which would be
worked through during 2021 and 2022, adding to supply.
    Following are numbers for 2020 and comparisons.
    
    PLATINUM (THOUSANDS OF OUNCES)
       
                          2019       2020  % change
 SUPPLY                                             
 Mine supply              6077       4888       -20%
 Recyling                 2082       1642       -21%
 TOTAL SUPPLY             8159       6530       -20%
                                                    
 DEMAND                                             
 Autocatalyst             2858       2224       -22%
 Chemical                  676        614        -9%
 Electronics               230        239         4%
 Glass                     441        378       -14%
 Investment               1131        901       -20%
 Jewellery                2056       1581       -23%
                           230        206       -10%
 Petroleum                 251        322        28%
 Other                     587        455       -22%
 TOTAL DEMAND             8460       6920       -18%
                                                    
 Physical                 -301       -390        30%
 Surplus/Deficit                           
 
    PALLADIUM (THOUSANDS OF OUNCES)
      
                          2019       2020  % change
 SUPPLY                                             
 Mine supply              7117       6167       -13%
 Recyling                 3407       3121        -8%
 TOTAL SUPPLY            10524       9288       -12%
                                                    
 DEMAND                                             
 Autocatalyst             9672       8497       -12%
 Chemical                  499        486        -3%
 Dental                    313        239       -24%
 Electronics               714        634       -11%
 Investment                -87       -186       114%
 Jewellery                 130         93       -28%
 Other                     176        131       -26%
 TOTAL DEMAND            11417       9894       -13%
                                                    
 Physical                 -893       -606       -32%
 Surplus/Deficit                           
 
    RHODIUM (THOUSANDS OF OUNCES)
    
                          2019       2020  % change
 SUPPLY                                              
 Mine supply               760        583        -23%
 Recyling                  357        338         -5%
 TOTAL SUPPLY             1117        921        -18%
                                                     
 DEMAND                                              
 Autocatalyst             1023        925        -10%
 Chemical                   60         56         -7%
 Electronics                 6          6          0%
 Glass                      45          7        -84%
 Other                      21         11        -48%
 TOTAL DEMAND             1155       1005        -13%
                                                     
 Physical                  -38        -84        121%
 Surplus/Deficit                           
 
    Source: Johnson Matthey
    
    

    
 (Reporting by Peter Hobson; editing by Jason Neely and Elaine
Hardcastle)
  
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