Plat­inum will re­main in deficit un­til 2021

CityPress - - Business -

The plat­inum mar­ket will stay in a short­age for the next six years as sup­plies re­main con­strained amid grow­ing or ro­bust de­mand from jewellers and car com­pa­nies, ac­cord­ing to a re­port com­mis­sioned by the World Plat­inum In­vest­ment Coun­cil.

The deficit, which to­talled 365 000 ounces in 2015, would av­er­age 250 000 ounces a year un­til 2021, David Jol­lie, an in­de­pen­dent con­sul­tant at Glaux Metal, said in the re­port. The global truck mar­ket, which uses the metal in devices to curb emis­sions, might dou­ble pur­chases in the next five years, he said.

While plat­inum has been in an­nual short­age since 2012, am­ple sup­plies of stock­piled metal and China’s slow­down sent prices to a seven-year low this month. The rout has hurt some of the big­gest min­ers, in­clud­ing Lon­min, which has been forced to cut un­prof­itable pro­duc­tion. If prices re­main weak, there is a risk that out­put will de­cline fur­ther.

Jew­ellery de­mand is ex­pected to in­crease by about 1% a year as In­dian con­sumers buy more, while there will prob­a­bly be lit­tle growth in Chi­nese de­mand for the items, ac­cord­ing to the re­port.

To­tal plat­inum con­sump­tion is es­ti­mated to to­tal 8.1 mil­lion ounces this year.

Plat­inum for im­me­di­ate de­liv­ery in Lon­don has dropped 31% over the past year.

– Bloomberg

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