An exploration of automotive platinum demand and its impacts on the platinum market

[摘要] (cont.) The regression results indicate that the automotive platinum demand has historically been an inelastic one. Global automotive sales have indeed been a driver of platinum demand behavior. Regression on automotive sales in India, a BRIC country has high correlation with wealth as measured by GDP per capita. In the US and Japan, automotive sales show high autocorrelation and additional correlative relationships were not confirmed. Model results show that the automotive industry drives platinum price increases when there is a combination of low elasticity of platinum demand and large growth rates in the global automotive industry. Recent news about new technologies suggests that demand elasticity may increase, and the model suggests that higher elasticity would reduce the impact of automotive industry growth on the total demand for platinum.

[发布机构] Massachusetts Institute of Technology