PGM miners delight in new platinum dynamic
With a recovery driven by supply and demand, the sun is shining on platinum group metals — for now
After several months of positively trending prices, platinum has staged a full-throated rally, gaining 20% in just more than a week and taking sister metal palladium with it. All told, platinum is 43% stronger this year — a development that turns on three factors.
First, metal reserves are in decline and there is little prospect of sustained supply in the long term. Second, balance sheets are eroding faster than expected. This means production is vulnerable to cutbacks. Third, the market penetration of battery electric vehicles, existentially threatening to platinum group metals (PGMs) because they don’t need autocatalysts, is lower than consensus. This unexpected factor wasn’t priced into the market...
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