Dip in South African output will bring down platinum surplus
Falling platinum production from SA, the world’s largest source of the metal, will contribute to bringing the global market for the industrial and precious metal close to equilibrium in 2018 after the market suddenly popped into a 250,000oz surplus in 2017. According to data released by the World Platinum Investment Council, a group funded by SA’s platinum miners to spur investment in the metal used to make autocatalysts and jewellery, the market will move into a far smaller surplus of just 25,000oz in 2018, with mined supply falling by 4% led by SA, Russia and smaller suppliers. To offset this decline, the demand for platinum from makers of autocatalytic converters — devices made using the metal to scrub out noxious gases from diesel engine exhausts — is also forecast to fall by 3% to 3.285-million ounces. For South African platinum miners the worry is that the level of recycled platinum continues to rise, coming close to half of SA’s output. The report envisaged a 60,000oz increas...
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