Metal fatigue for platinum market?
After oversupplying the global platinum market, SA producers are feeling the pinch, and looking to new drivers of demand for the metal
Once the rising star among commodity sectors, the SA platinum industry has, effectively, been the architect of its own demise. In anticipating higher demand, producers ramped up production. Only, the demand never transpired. Instead, they oversupplied the global market, which for years had a supply-demand imbalance as a result. Last month the price dipped below $800 an ounce — a level last seen a decade ago. And companies such as Impala Platinum and Lonmin continue to cut jobs and close shafts to keep their heads above water. It’s hoped that something will change, and soon. Back when producers increased production, it was thought that new emissions standards would drive demand. With platinum already used in the manufacture of car autocatalysts, it was expected that much more would be needed for vehicles to conform to emissions targets. Instead, manufacturers have met the standards without the need for more platinum. Recycling of the metal has also helped to regulate demand. It remai...
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