The Indian market is particularly strong for silver. Silver consumption there was forecast to surge by around 80% in 2022, Bloomberg said, as warehouse inventories were drawn down after two years of covid. While little silver was bought in 2020 and 2021, because of hits to supply chains and demand, 2022 sales look back on track: Local purchases may surpass 8,000 tons in 2022 from about 4,500 tons [in 2021], said Chirag Sheth, principal consultant at Metals Focus Ltd. That’s up from an April [2022] estimate of 5,900 tons. By Richard Mills for Kitco

On March 8, the platinum futures contract settled at $940.60 an ounce, while palladium ended at $1,362.10 an ounce, its lowest since June 2019. In the past 12 months, platinum has lost 18%, but still outperformed palladium, which dropped 54%. Palladium was “badly hit” by an anemic auto sector, and demand hasn’t recovered since the pandemic, says Nikos Kavalis, managing director at Metals Focus. He says substitution from palladium to platinum and a rise in battery-powered vehicles contributed to palladium’s steeper decline. By Myra P. Saefong for Barron’s

A worsening of electricity supply shortages in major producer South Africa and sanctions-related operating challenges in Russia are among downside risks to the global supply, the WPIC, which uses data from consultants Metals Focus, added

“While [Nornickel’s] production achieved planned volumes, logistical challenges associated with the conflict resulted in increased friction in sales during the early part of 2022 with around 9% of palladium produced in the first half of 2022 not realized as sales,” Jacob Smith, senior analyst of platinum group metals at Metals Focus, an independent precious metals consultancy, told Commodity Insights. “Logistical challenges appear to have eased as the year progressed; however, the reorientation of sales to new markets in 2022 and beyond is not yet completely evident/factored.” By Eri Silva for S&P Global

Meanwhile, 2022 saw a 1% increase on 2021. Adam Webb, head of mine supply at Metals Focus points out that Russia, the world’s second-largest gold producer, had a major impact on global output. “We estimate a decrease of about 30 t from Russia in 2022. This is because miners in the country have struggled to get finance and equipment from Western sources. Also, we saw companies such as Kinross closing their mines and exiting Russia.” By Gerard Peter for Mining Review Africa

Mumbai-based Metal Focus principal consultant Chirag Sheth said demand from China is expected to grow, following the reopening of the country’s economic activities this year compared with a discouraging performance last year. ‘We expect some bit of growth coming in from China while demand in India will continue its growth over the last two years since it has shown very good data. By Bernama

Palladium on Wednesday fell near $1450 per ounce, its cheapest since September 2019 and the low-point for 2023 prices forecast by PGM specialist Wilma Swarts at Metals Focus thanks to “growing awareness that 2024 onwards will see surplus conditions” in the market’s balance of supply and demand. By BullionVault

Adam Webb, head of mine supply at Metals Focus gives us a forecast for gold supply in 2023, the factors that will influence it and Africa’s role in the global gold mining supply. By Mining Review Africa

“Going forward, this will remain a key dynamic to watch out for. If US economic data in the coming months rules out an outright recession and suggests only a modest slowdown, the case for holding on to higher interest rates will become stronger and also help rule out rate cuts for the foreseeable future,” Metals Focus analysts say. “In this context, the Fed’s March meeting will show new projections by Fed members for the first time in 2023. By Josh Chiat for Stockhead

Three to seven grams of platinum group metals (PGMs) — mostly platinum, palladium and rhodium – go in every catalytic converter, which sit in your car exhaust to reduce polluting emissions. Catalytic convertors account for as much as 80% of annual platinum and palladium production, respectively. However, an accumulation of hydrogen related investment globally is beginning to impact PGM demand, with Metals Focus expecting hydrogen related offtake to hit ~100,000oz in 2023. By Reuben Adams for Stockhead

Prices surged last year due to fears of sanctions on Norilsk’s palladium after Russia invaded Ukraine. Uncertainty around supply remains as long as the war continues, said Jacob Smith at consultants Metals Focus “If there’s any constraints on that (supply from Russia), you’ll definitely see a spike,” he said. By Peter Hobson for Reuters

Despite a strong start in the first quarter of 2022, last year proved to be a consolidation period for the precious metal market, relatively in line with expectations, according to the latest report from the London Bullion Market Association (LBMA). Friday, the LBMA reported that gold prices averaged $1,800.09 an ounce last year, up only slightly from the 2021 average price of $1,798.60 an ounce. By Neils Christensen for Kitco News

A surge in gold smuggling has pushed India to look into cutting its import duty on the precious metal as illegal activity is hurting official profits.”The Indian government is set to unveil its annual budget for the upcoming 2023-24 fiscal year (April-23-March-24) on 1st February,” said Metals Focus in its report Monday. “Under normal circumstances, any changes in the customs or import duty also tend to be revealed at this time.” By Anna Golubova for Kitco News

Gold is deeply embedded in Indian culture and purchases are often driven by tradition. Typically, all family members are involved in decision making about how and when gold jewellery purchases are made. Discussions over the years between Metals Focus and retail jewellers have revealed that weddings remain the key motive for buying gold in India. By Gold Hub

Gold miners have had to search deeper and harder to find the precious metal over the past decade, and it sometimes gold majors such as Newcrest (ASX:NCM), Barrick, Newmont and Gold Fields seem to be running in place. New analysis from Metals Focus shows that the world’s 12 biggest gold producers have seen their growth stall and even fall backwards, despite prices lifting to unforeseen highs over the past 10 years. Metals Focus says the group’s total equivalent gold production has tumbled 10 per cent since 2013. By Josh Chiat for Stockhead

However, as Wilma Swarts, director of platinum-group metals (PGMs) at Metals Focus, explained, supply troubles out of other regions had a major impact on palladium’s 2022 price story. “The Russian war on Ukraine had a very material impact on the palladium price, but this was primarily due to market speculation rather than weakening regional supply,” Swarts wrote in an email to the Investing News Network (INN). “Mine supply from Russia remained in line with production guidance.” By Georgia Williams for Palladium Investing News