Global – On-going labour disruption at South African mines and an expected surge in demand as a result of a recovering European economy are likely to bring about a fall in the significant global stocks of platinum as well as a boost in prices, the Financial Times has reported. ‘We are now getting near the stage where production losses from the strikes could start lifting the price,’ analysts at Barclays have stated.
At the start of the year, the platinum price climbed some 5% to average US$ 1423 an ounce owing to a weaker US dollar and improved sentiment surrounding precious metals in general, Barclays argues. Should the strikes in South Africa not end soon, it contends, further increases will follow.
The analysts add that the platinum price is still 35% below its all-time high of 2008, not least because Europe′s automotive industry has experienced its most severe drop in sales for 20 years. ′No explosion in new car sales is anticipated any time soon as the European economies cautiously exit the recession,′ observes US autocatalyst recycler A-1 Specialized Services and Supplies.
European car manufacturers are anticipating 2% growth in 2014. Meanwhile, ′global vehicle sales reached 82.8 million units in 2013, with a figure of 85 million deemed possible for this year,′ says A-1.
A feature detailing A-1 Specialized Services and Supplies′ latest platinum group metal forecasts will be published in the March issue of Recycling International.
For more information, visit: www.group.barclays.co.uk