admin“We are entering a period of structural surpluses in the platinum market where there is a degree of agility on the supply side and nothing in terms of demand that will bring about a balanced market,” GFMS said in the report.
“Visible platinum stocks rose to 4,5 million ounces in 2011 and could rise to more than 5 million ounces by the end of this year,” it said
GFMS said headline supply stood at 7,97 million ounces while demand was 7,23 million ounces resulting in a gross surplus of 735 000 ounces last year.
“Although the surplus shrunk from 962 000 ounces in 2010, this remained substantial by historical standards,” it said. The precious metals consulting firm attributed the continued slide in demand to low industrial capacity mainly in the automotive industry.
“The ongoing eurozone crisis presents a major downside risk, given the concentration of platinum auto catalyst demand in Europe, it is therefore expected that platinum will trade in a range of US$1 475 to US$1 775 over the remainder of this year.”
In 2010, global demand for platinum by the automobile sector stood at 2, 985 million ounces, largely fuelled by China’s rising needs.
Global demand for the commodity has dipped over the years as effects of the global financial recession took hold on leading automobile industries who either closed shop or cut back on operations.
Platinum and its sister metal palladium are mostly used in motor vehicle catalytic converters and in jewellery manufacturing.
Zimbabwe is the third largest platinum producer in the world after South Africa and Russia.
Currently, there are three mines operating in Zimbabwe, namely Zimplats, Mimosa and Unki Platinum Mine. Platinum currently accounts for about 36 percent of the country’s total mineral production with at least 230 000 tonnes of the white metal having been exported in 2010. — New Ziana.
Online Reporter