1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:HSBC Securities(USA)Inc.View HSBC Global Research at:https:/ Listen to our insightsFind out moreHSBCGlobal I

2、nvestmentResearchPodcasts PGM prices are sharply higher,reflecting bullish fundamentals;platinum and palladium to stay high but may require correction Platinum deficit to stay wide aiding prices;auto demand curbed but jewelry rising,investors turning positive;mine supply limited Palladium gaining on

3、 high platinum;auto demand weakening but supply falling;deficits ongoing but narrowing;shorts covering Platinum rallies sharply but may need to pause Platinum prices have increased from USD948/oz to USD1,482/oz since our last Outlook in April.Underlying fundamentals support high prices,but the marke

4、t may need to correct and consolidate.Mine supply is moving lower as heretofore low prices spur restructuring in South Africa and North America.Capex reductions may inhibit output well into this decade,although high prices give producers some respite.Auto demand is curbed by tariff concerns,declinin

5、g substitution rates with palladium,and sluggish petroleum vehicle demand as electric vehicles(EVs)continue to make inroads.Jewelry demand is rising rapidly and is highly competitive with gold.Platinum is also attracting investor demand as a cheaper alternative to gold.The outlook for other industri

6、al demand is mixed.We expect the production/consumption deficit to widen to well over 900,000oz in 2026.We remain positive but look for a correction and raise our average price forecasts to USD1,215/oz(from USD1,030oz)for 2025 and to USD1,445/oz(from USD1,310/oz)for 2026.Palladium up with platinum b