EU New Passenger Car Registrations Rose 4.3% In February

EU new passenger car registrations rose 4.3% in February when compared to the same time last year to 1.125 million units but were below sales posted in January of 1.25 million (-10.2% m/m).

Why does it matter: Platinum consumption by the European automotive manufacturers essentially for diesel production represents about one-fifth of total annual offtake for the metal, the largest single sector of global platinum demand.

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Regardless, last month’s sales were the highest for a February period since 2008, according to the European Automobile Manufacturers Association (ACEA). Of the major EU markets, the UK (-2.8%) and Italy (-1.4%) saw declining sales while Spain (+13.0%), Germany (+7.4%) and France (+4.3%) had decent growth in February. For the first two months of 2018, new registrations across the EU have risen 5.8% y/y to 2.379 million units. In calendar 2017, the EU reported a 3.4% rise in new passenger car registrations to 15.14 million units.

Commercial vehicle sales across the EU countries increased 7.9% y/y in January 2018, the most recent data, to 187,811 units but were down from the 205,949 units in the prior month of December (-8.8% m/m). Of the major EU markets, only the UK (-5.8%) posted a decrease in y/y sales of commercial vehicles for January.

The ACEA reported that the sale of diesel-powered vehicles as a percentage of total new passenger car registrations declined to 44.4% in 2017, its lowest market share since 2003 and down from its height of 56.1% of sales recorded in 2011.

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Also in this week’s Platinum Market Review:

-The OECD raised its global growth forecast to 3.9% in 2018

-Platinum prices continue to struggle

-Palladium prices crossed above the $1,000 an ounce mark but only briefly

-Total Chinese vehicle sales in February 2018 were reported as 1.72 million units, down 11.1%

Click HERE to read the March 19, 2018 Platinum Market Review

Disclaimer: 

Material contained in this report is based upon publicly available market data believed to be accurate and reliable and is presented for informational purposes only. KMR assumes no warranty or liability for its completeness, nor guarantees future market performance. Further, KMR assumes no liability for direct or indirect loss or damage from the use of information contained in this report, or from any unforeseen errors or omissions.

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Key Metal Refining

About Key Metal Refining LLC Key Metal Refining (KMR) buys scrap catalytic converters as the raw material source for its platinum group metal sales generated through its recovery and refining process. KMR’s controlling partner is DOWA Metals and Mining Co. America, a wholly owned subsidiary of DOWA Holdings Co, Ltd. KMR de-cans catalytic converters at its plant in Hainesport New Jersey. The material is further refined and smelted by DOWA in Japan.