By Brijesh Patel
       May 9 (Reuters) - The platinum market faces its largest
supply shortfall in 10 years in 2024 as shipments from Russia
return to normal from last year's highs and industrial demand
stays firm, Johnson Matthey said in a report on
Thursday.
    The autocatalyst maker added that it expected all platinum
group metals (PGM) - platinum, palladium, and rhodium - to
remain in deficit in 2024.
    The three metals are used in autocatalysts that reduce
emissions from vehicle engines, with platinum also used in other
industry and for jewellery and investment.
    Johnson Matthey (JM) said it expected the platinum market's
deficit to increase to 598,000 ounces this year from a shortfall
of 518,000 ounces in 2023. 
    It forecast platinum demand would stabilise at around 7.61
million ounces, with small decreases in automotive and jewellery
balanced by an uptick in investment.
    Auto sector consumption is expected to slip 1.3% in 2024,
while primary supply is projected to fall 2% as Russian
shipments return to more normal levels following heavy selling
of mined stocks in 2023, JM said.
    For palladium, JM said use by automakers would fall about
7%, reducing overall demand to 9.73 million ounces and cutting
the market deficit to 358,000 ounces from 1.02 million ounces
last year.
    For rhodium, auto consumption is also expected to fall - by
about 6% - dragging total demand down 4% to 1.06 million ounces.
The rhodium market is likely to be undersupplied by 65,000
ounces, down from 125,000 ounces in 2023, JM said.
    "Automotive and industrial users bought more metal than they
needed during 2020-2022 to mitigate price and supply risks.
Since then, consumers have been using up excess PGM inventory,
and some have even sold metal back to the market," Rupen
Raithatha, market research director at Johnson Matthey, said.
    At around $950 an ounce, palladium is trading lower
than platinum at $960, pressured by growing demand
concerns.
    Rhodium  is trading around $4,700 an ounce, down
about 84% from all-time highs reached in March 2021.
    
PLATINUM (THOUSANDS OF OUNCES)     
                                   2023      2024    % change
 SUPPLY                                                  
 Primary supply (mined)           5,791     5,681      -2%
 Secondary supply (recycled)      1,300     1,335       3%
 TOTAL SUPPLY                     7,091     7,016      -1%
                                                         
 DEMAND                                                  
 Automotive                       3,342     3,299      -1%
 Chemical                          647       643       -1%
 Dental & biomedical               264       273        3%
 Electrical & electronics          195       221       13%
 Glass                             776       721       -7%
 Investment                         46       120       160%
 Jewellery                        1,361     1,343      -1%
 Petroleum                         174       180        3%
 Pollution control                 275       279        1%
 Other                             529       535        1%
 TOTAL DEMAND                     7,609     7,614       0%
                                                         
 Movement in stocks                -518      -598        
   
    PALLADIUM (THOUSANDS OF OUNCES)     
                                   2023      2024    % change
 SUPPLY                                                  
 Primary supply (mined)           6,547     6,454      -1%
 Secondary supply (recycled)      2,807     2,919       4%
 TOTAL SUPPLY                     9,354     9,373       0%
                                                         
 DEMAND                                                  
 Automotive                       8,745     8,145      -7%
 Chemical                          543       535       -2%
 Dental & biomedical               193       185       -4%
 Electrical & electronics          511       524        3%
 Investment                         61        29       -52%
 Jewellery                          86        85       -1%
 Pollution control                 135       140        4%
 Other                              97        88       -9%
 TOTAL DEMAND                     10,371    9,731      -7%
                                                         
 Movement in stocks               -1,017     -358        
   
    RHODIUM (THOUSANDS OF OUNCES)     
                                   2023      2024    % change
 SUPPLY                                                  
 Primary supply (mined)            701       704        0%
 Secondary supply (recycled)       285       295        4%
 TOTAL SUPPLY                      986       999        1%
                                                         
 DEMAND                                                  
 Automotive                        989       931       -6%
 Chemical                           81        92       14%
 Electrical & electronics           6         6         0%
 Glass                              18        18        0%
 Other                              17        17        0%
 TOTAL DEMAND                     1,111     1,064       4%
                                                         
 Movement in stocks                -125      -65         
 
   Source: Johnson Matthey
    

    
 (Reporting by Brijesh Patel in Bengaluru; Editing by Mark
Potter)